Stonemor Partners Misses on Both Revenue and Earnings

Stonemor Partners (NYSE: STON  ) reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stonemor Partners missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. GAAP loss per share grew.

Gross margins shrank, operating margins grew, net margins shrank.

Revenue details
Stonemor Partners tallied revenue of $59.3 million. The two analysts polled by S&P Capital IQ predicted sales of $62.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 -$0.20. The one earnings estimate compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS were -$0.20 for Q4 versus -$0.16 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 56.2%, 30 basis points worse than the prior-year quarter. Operating margin was 4.3%, 40 basis points better than the prior-year quarter. Net margin was -6.6%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $64.6 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $259.5 million. The average EPS estimate is -$0.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 356 members out of 376 rating the stock outperform, and 20 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Stonemor Partners 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 Stonemor Partners is outperform, with an average price target of $29.67.

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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. The Motley Fool recommends StoneMor Partners. The Motley Fool owns shares of StoneMor Partners. 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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