Stewart Information Services Increases Sales but Misses Estimates on Earnings
Stewart Information Services (NYS: STC) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Stewart Information Services missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded.
Gross margins improved, operating margins shrank, net margins contracted.
Stewart Information Services reported revenue of $385.0 million. The two analysts polled by S&P Capital IQ anticipated a top line of $416.7 million on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $366.4 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 -$0.63. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.47 per share. GAAP EPS were -$0.63 for Q1 against -$0.55 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.6%, 140 basis points better than the prior-year quarter. Operating margin was -1.7%, 30 basis points worse than the prior-year quarter. Net margin was -3.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $461.8 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $0.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 147 members out of 165 rating the stock outperform, and 18 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Stewart Information Services 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 Stewart Information Services is hold, with an average price target of $14.50.
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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. Motley Fool newsletter services have recommended buying shares of Stewart Information Services. 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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