Beam Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Beam (NYS: BEAM) reported earnings on Feb. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Beam met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Beam booked revenue of $637.5 million. The four analysts polled by S&P Capital IQ anticipated a top line of $642.8 million. Sales were 63% lower than the prior-year quarter's $1.90 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.69. The eight earnings estimates compiled by S&P Capital IQ forecast $0.67 per share on the same basis. GAAP EPS of $0.59 for Q4 were 7.3% higher than the prior-year quarter's $0.55 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.2%, 1,460 basis points better than the prior-year quarter. Operating margin was 26.3%, 1,580 basis points better than the prior-year quarter. Net margin was 14.8%, 980 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $510.7 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $2.41 billion. The average EPS estimate is $2.40.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 82 members out of 84 rating the stock outperform, and two members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Beam a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Beam is hold, with an average price target of $51.90.

At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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.

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