The 10-second takeaway
For the quarter ended March 31 (Q1), BCE met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped slightly.
Gross margins expanded, operating margins contracted, net margins dropped.
BCE logged revenue of $4.84 billion. The eight analysts polled by S&P Capital IQ anticipated sales of $4.87 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 $0.76. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. Non-GAAP EPS of $0.76 for Q1 were 1.3% higher than the prior-year quarter's $0.75 per share. GAAP EPS of $0.72 for Q1 were 2.7% lower than the prior-year quarter's $0.74 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 39.9%, 20 basis points better than the prior-year quarter. Operating margin was 22.2%, 70 basis points worse than the prior-year quarter. Net margin was 12.2%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.98 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $20.12 billion. The average EPS estimate is $3.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 240 members out of 263 rating the stock outperform, and 23 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give BCE 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 BCE is hold, with an average price target of $44.25.
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