The 10-second takeaway
For the quarter ended March 31 (Q1), Beam beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Beam reported revenue of $577.7 million. The eight analysts polled by S&P Capital IQ predicted sales of $565.9 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $533.8 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 $0.64. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.54 per share. Non-GAAP EPS of $0.64 for Q1 were 21% higher than the prior-year quarter's $0.53 per share. GAAP EPS of $0.71 for Q1 were 45% higher than the prior-year quarter's $0.49 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 60.4%, 140 basis points better than the prior-year quarter. Operating margin was 28.9%, 320 basis points better than the prior-year quarter. Net margin was 19.8%, 500 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $631.5 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $2.61 billion. The average EPS estimate is $2.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 172 members out of 178 rating the stock outperform, and six members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Beam a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beam is outperform, with an average price target of $63.58.
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