The 10-second takeaway
For the quarter ended June 30 (Q2), Vector Group missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, net margins grew.
Vector Group tallied revenue of $249.1 million. The one analyst polled by S&P Capital IQ anticipated a top line of $265.5 million on the same basis. GAAP reported sales were 71% higher than the prior-year quarter's $145.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.18. The one earnings estimate compiled by S&P Capital IQ predicted $0.17 per share. Non-GAAP EPS of $0.18 for Q2 were 29% higher than the prior-year quarter's $0.14 per share. GAAP EPS of $0.15 for Q2 were 200% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 27.6%, much worse than the prior-year quarter. Operating margin was 17.8%, much worse than the prior-year quarter. Net margin was 5.4%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $264.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $0.60.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 270 members out of 297 rating the stock outperform, and 27 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Vector Group a green thumbs-up, and seven give it a red thumbs-down.
Is Vector Group the best consumer bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including three consumer-facing product powerhouses. Click here for instant access to this free report.
- Add Vector Group 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. The Motley Fool has no position in any of the stocks mentioned. 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.