Ding, ding, ding! Come and get it, investors. Smith & Wollensky (NASDAQ:SWRG) serves up a heaping platter of full-year and Q4 2005 earnings numbers Monday. Get 'em while they're hot.

What analysts say:

  • Mum's the word. No analysts currently follow this $50 million company. Consequently, we've got nothing to say about either Wall Street's revenue or earnings expectations. Simply put, no one's watching (no one but us Fools, that is).

What management says:
While analyst expectations are lacking, the company has its own thoughts on revenues, at least. Back in January, Smith & Wollensky reported that its Q4 sales ended up at $33.6 million, a 12% decline year over year. Its explanations: First, the quarter had one calendar week less than was included in the previous year's Q4. Second, Q4 2004 had no Hurricane Wilma to close the company's Miami Beach restaurant for more than two full days, and no Hurricane Katrina to shut its New Orleans location indefinitely.

Previously, the company lamented that its third-quarter results marked "the greatest negative impact of weather on our restaurants in our history as a public company." Still, the company seems to think the fact that its stock has lagged the S&P 500 over the past year presents a buying opportunity, and advises that in Q3 it repurchased another 292,000 shares.

What management does:
Q3 may have been the company's worst quarter ever, weather-wise, but it was still better than Q3 2004, profits-wise. Over the past 18 months, in fact, Smith & Wollensky has managed to grow its rolling gross margins a bit, to double its minuscule operating margin and shrink its net loss as a percentage of revenues.

Margins %

6/04

9/04

1/05

4/05

7/05

10/05

Gross

44.8

44.4

45.5

45.9

45.8

45.8

Op.

0.1

(1.3)

(0.2)

0.4

0.4

0.2

Net

(1.9)

(3.3)

(1.7)

(1.1)

(1.1)

(1.1)
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
I would not describe myself as a Smith & Wollensky "bull." (On the contrary, I hear many bulls get skittish when they hear that ampersand-ed name.) But it's worth noting that -- despite the company's travails -- margins are growing, even while more widely diversified, while those at more hurricane-proof steak restaurants like Outback (NYSE:OSI) and Lone Star (NASDAQ:STAR) are falling.

Competitors:
In addition to the above, the company's rivals include Morton's (NYSE:MRT) and Ark Restaurants (NASDAQ:ARKR).

Fool contributor Rich Smith does not own shares of any company named above.

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