The 10-second takeaway
For the quarter ended March 31 (Q1), BRF met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew. GAAP earnings per share expanded significantly.
Margins grew across the board.
BRF reported revenue of $3.56 billion. The eight analysts polled by S&P Capital IQ predicted sales of $3.55 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.21. The three earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.21 for Q1 were 11% higher than the prior-year quarter's $0.19 per share. GAAP EPS of $0.20 for Q1 were 100% higher than the prior-year quarter's $0.10 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 23.5%, 230 basis points better than the prior-year quarter. Operating margin was 7.4%, 300 basis points better than the prior-year quarter. Net margin was 5.0%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.87 billion. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $15.87 billion. The average EPS estimate is $1.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 238 rating the stock outperform, and 15 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give BRF a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BRF is outperform, with an average price target of $22.03.
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