The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Beam beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins grew, net margins dropped.
Beam reported revenue of $627.5 million. The seven analysts polled by S&P Capital IQ predicted revenue of $607.2 million on the same basis. GAAP reported sales were 56% lower than the prior-year quarter's $1.43 billion.
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 $0.62. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.48 for Q3 were 82% lower than the prior-year quarter's $2.67 per share. (The prior-year quarter included $3.08 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.2%, 1,640 basis points better than the prior-year quarter. Operating margin was 26.0%, 1,440 basis points better than the prior-year quarter. Net margin was 12.2%, 1,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $696.8 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $2.50 billion. The average EPS estimate is $2.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 161 members out of 168 rating the stock outperform, and seven members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Beam a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beam is hold, with an average price target of $62.08.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Beam. Motley Fool newsletter services recommend Beam. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.