Why Stewart Enterprises' Shares Jumped


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Stewart Enterprises (NAS: STEI) have jumped today by as much as 10% after the company reported better-than-expected earnings last night.

So what: Revenue totaled $129.2 million, topping the Street's best guesses of $126.5 million. Adjusted earnings were $9.9 million, or $0.11 per share, also topping estimates. Both growing sales and cost cutting helped contribute to the solid quarter.

Now what: CEO Thomas Kitchen said that the year continues to be very successful and that Stewart's fiscal-year-to-date sales and gross profits are the highest in four years. The company also repurchased a million shares of stock during the quarter, decreasing 5% of outstanding shares over the past year. Stewart Enterprises has made steps to reorganize the company and those moves are paying off.

Interested in more info on Stewart Enterprises? Add it to your watchlist byclicking here.

The article Why Stewart Enterprises' Shares Jumped originally appeared on Fool.com.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy.
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