The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Beam beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins increased.
Beam booked revenue of $709.1 million. The seven analysts polled by S&P Capital IQ expected revenue of $698.7 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $637.5 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 $0.67. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.79 for Q4 were 34% higher than the prior-year quarter's $0.59 per share. (The prior-year quarter included -$0.02 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 57.2%, 70 basis points worse than the prior-year quarter. Operating margin was 24.4%, 290 basis points worse than the prior-year quarter. Net margin was 17.8%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $582.2 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $2.66 billion. The average EPS estimate is $2.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 168 members out of 173 rating the stock outperform, and five members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Beam a green thumbs-up, and one 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 $62.54.
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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 recommends 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.