Steiner's Winning Touch

I'm starting to wonder if I really need anything more than a Xerox machine whenever Steiner Leisure (Nasdaq: STNR  ) posts financial results. Yesterday marked another period of market-thumping results, as the company behind the luxurious spas on most cruise ships earned $0.66 a share on continuing operations during the third quarter while Wall Street was only holding out for a $0.64-per-share showing. Smoking analysts is what Steiner has done in 17 of the past 18 quarters.

Revenues climbed 22% higher to $126 million, also slightly ahead of where the pros were standing. The company has accelerated its top-line growth rate during every quarter so far this year.

With an operating presence on 124 cruise ships and 53 landlubber resorts, Steiner isn't just a way to piggyback on the success of cruising landlords like Carnival (NYSE: CCL  ) and Royal Caribbean (NYSE: RCL  ) or partner hoteliers like Hilton (NYSE: HLT  ) and Marriott (NYSE: MAR  ) . Steiner is actually in a better position to profit than the landlords donning the coattails. Why is that? Well, rising fuel prices have stung the cruise lines, and the occasional tourism lull finds hotel chains discounting rates to fill up rooms. Steiner lives a life that is sheltered from a lot of that overhang, as patrons don't expect cheaper spa treatments once they book cheaper cabin berths or hotel suites.

Steiner may be as close as you can get to an all-weather play in the travel space, although it would no doubt get pinched if disposable income was squeezed to a mere trickle.

I was fortunate enough to stumble on Steiner a couple of years ago. I recommended the stock to Rule Breakers newsletter service subscribers in the fall of 2004, and it has gone on to more than double. Despite the run, the stock is trading at just 16 times forward earnings estimates, and we already know the company's track record of making those targets appear meager.

Sail on, Steiner. Crack those knuckles and sail on.

If you want to read Rick's original buy report for Steiner and all of the updates along the way, take advantage of a 30-day guest pass that will grant you a trial subscription to the Motley Fool Rule Breakers service.

Longtime Fool contributor Rick Munarriz will never be confused with a metrosexual -- his shoes don't even match at the moment -- but he has taken in a pair of Steiner spa treatments on the Disney Magic. He does not own shares in any of the companies in this story, save for Disney (a Stock Advisor pick). Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Fool has a disclosure policy.