The 10-second takeaway
For the quarter ended Sep. 30 (Q3), B/E Aerospace met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins contracted.
B/E Aerospace booked revenue of $766.7 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $767.4 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $636.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share. GAAP EPS of $0.18 for Q3 were 72% lower than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.6%, 20 basis points better than the prior-year quarter. Operating margin was 17.5%, 10 basis points worse than the prior-year quarter. Net margin was 2.4%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $766.7 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $3.05 billion. The average EPS estimate is $2.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 572 members out of 593 rating the stock outperform, and 21 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give B/E Aerospace a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on B/E Aerospace is outperform, with an average price target of $53.13.
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