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.
- Add Beam to My Watchlist.