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 improved, and GAAP earnings per share shrank.
Margins dropped across the board.
Steiner Leisure logged revenue of $185.9 million. The three analysts polled by S&P Capital IQ hoped for a top line of $171.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $162.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.83. The three earnings estimates compiled by S&P Capital IQ forecast $0.81 per share on the same basis. GAAP EPS of $0.81 for Q4 were 5.8% lower than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.9%, 250 basis points worse than the prior-year quarter. Operating margin was 8.1%, 160 basis points worse than the prior-year quarter. Net margin was 6.6%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $196.0 million. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $781.6 million. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members rating the stock outperform and seven members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 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 outperform, with an average price target of $57.
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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.