Fool Checkup: Martha Stewart Living Omnimedia Earnings

Seth Jayson, The Motley Fool
Updated

Martha Stewart Living Omnimedia (NYS: MSO) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Martha Stewart Living Omnimedia missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share contracted.


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

Revenue details
 Martha Stewart Living Omnimedia tallied revenue of $47.9 million. The three analysts polled by S&P Capital IQ expected to see revenue of $51.8 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $54.9 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 -$0.03. The three earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share. GAAP EPS were -$0.04 for Q2 versus -$0.05 per share for the prior-year quarter.

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 46.6%, 420 basis points better than the prior-year quarter. Operating margin was -4.4%, 10 basis points better than the prior-year quarter. Net margin was -5.6%, 20 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $49.9 million. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $212.0 million. The average EPS estimate is -$0.06.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 202 members out of 307 rating the stock outperform, and 105 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Martha Stewart Living Omnimedia a green thumbs-up, and 29 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Martha Stewart Living Omnimedia is hold, with an average price target of $4.33.

The article Fool Checkup: Martha Stewart Living Omnimedia Earnings 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. The Motley Fool has no positions in the stocks mentioned above. 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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