Stein Mart Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Stein Mart (NAS: SMRT) filed its 10-K on April 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Stein Mart met expectations on revenues and missed estimates on earnings per share.

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


Margins dropped across the board.

Revenue details
Stein Mart tallied revenue of $328.2 million. The three analysts polled by S&P Capital IQ predicted revenue of $332.5 million on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $336.7 million.

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

EPS details
Non-GAAP EPS came in at $0.15. The four earnings estimates compiled by S&P Capital IQ averaged $0.19 per share on the same basis. GAAP EPS of $0.13 for Q4 were 68% lower than the prior-year quarter's $0.41 per share.

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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 25.2%, 80 basis points worse than the prior-year quarter. Operating margin was 3.8%, 30 basis points worse than the prior-year quarter. Net margin was 1.7%, 390 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $305.6 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.39.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 88 members out of 142 rating the stock outperform, and 54 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Stein Mart a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stein Mart is outperform, with an average price target of $8.50.

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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. 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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