Bemis Beats on EPS but GAAP Results Lag

Bemis (NYSE: BMS) reported earnings on July 26. Here are the numbers you need to know.

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

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

Gross margins grew, operating margins expanded, net margins dropped.

Revenue details
Bemis notched revenue of $1.31 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.32 billion on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $1.37 billion.

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 $0.54. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.52 per share. GAAP EPS of $0.40 for Q2 were 22% lower than the prior-year quarter's $0.51 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 17.8%, 40 basis points better than the prior-year quarter. Operating margin was 7.8%, 20 basis points better than the prior-year quarter. Net margin was 3.2%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $5.24 billion. The average EPS estimate is $2.08.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bemis is hold, with an average price target of $32.36.

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