Stage Stores Beats on Both Top and Bottom Lines (SSI)

Stage Stores Beats on Both Top and Bottom Lines

Stage Stores (NYSE: SSI ) reported earnings on May 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Stage Stores beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share didn't change. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Gross margins increased, operating margins grew, net margins were steady.

Revenue details
Stage Stores logged revenue of $366.0 million. The two analysts polled by S&P Capital IQ anticipated net sales of $357.9 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $346.5 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 $0.05. The six earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share. GAAP EPS of -$0.01 were the same as 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 25.7%, 110 basis points better than the prior-year quarter. Operating margin was 0.0%, 30 basis points better than the prior-year quarter. Net margin was -0.1%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $367.9 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $1.13.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 40 members out of 61 rating the stock outperform, and 21 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Stage Stores a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stage Stores is outperform, with an average price target of $19.00.

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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 of Motley 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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