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.
Is Beam the best beverage bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average beverage seller. Click here for instant access to this free report.
- Add Beam to My Watchlist.
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.