How the Wheels Came Off Stewart Enterprises' Bus
Stewart Enterprises (NAS: STEI) reported earnings on March 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Stewart Enterprises missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded.
Gross margin contracted, operating margin dropped, and net margin expanded.
Stewart Enterprises reported revenue of $124.8 million. The three analysts polled by S&P Capital IQ anticipated sales of $131.3 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $129.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.10 for Q1 were 11% higher than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.3%, 160 basis points worse than the prior-year quarter. Operating margin was 14.8%, 220 basis points worse than the prior-year quarter. Net margin was 6.8%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $132.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $525.8 million. The average EPS estimate is $0.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 146 rating the stock outperform, and 13 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Stewart Enterprises a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stewart Enterprises is outperform, with an average price target of $8.40.
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At the time this article 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. 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.