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.
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