BE Aerospace Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

BE Aerospace (NAS: BEAV) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), BE Aerospace beat expectations on revenues and earnings per share.

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


Gross margins shrank, operating margins grew, and net margins improved.

Revenue details
BE Aerospace logged revenue of $768.1 million. The 14 analysts polled by S&P Capital IQ expected a top line of $749.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $608.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.72. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.69 for Q2 were 28% higher than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.2%, 10 basis points worse than the prior-year quarter. Operating margin was 17.9%, 40 basis points better than the prior-year quarter. Net margin was 9.3%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $767.6 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $2.81.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 570 members out of 591 rating the stock outperform, and 21 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give BE Aerospace 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 BE Aerospace is buy, with an average price target of $54.87.

The article BE Aerospace Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. 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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