The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steiner Leisure beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share stayed the same.
Margins dropped across the board.
Steiner Leisure recorded revenue of $211.1 million. The three analysts polled by S&P Capital IQ hoped for a top line of $199.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $185.9 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 $0.81. The three earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.81 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.
For the quarter, gross margin was 22.4%, 830 basis points worse than the prior-year quarter. Operating margin was 7.2%, 200 basis points worse than the prior-year quarter. Net margin was 5.6%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $207.1 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $842.4 million. The average EPS estimate is $3.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 102 members out of 108 rating the stock outperform, and six members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Steiner Leisure a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steiner Leisure is buy, with an average price target of $58.00.
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