Steinway Musical Instruments
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steinway Musical Instruments met expectations on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins shrank across the board.
Steinway Musical Instruments reported revenue of $94.6 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $95.2 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $88.1 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 $0.24. The two earnings estimates compiled by S&P Capital IQ predicted $0.35 per share on the same basis. GAAP EPS of $0.26 for Q4 were 7.1% lower than the prior-year quarter's $0.28 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 32.0%, 120 basis points worse than the prior-year quarter. Operating margin was 8.8%, 50 basis points worse than the prior-year quarter. Net margin was 3.4%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $76.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $362.9 million. The average EPS estimate is $1.75.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 55 members out of 60 rating the stock outperform, and five members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Steinway Musical Instruments a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steinway Musical Instruments is outperform, with an average price target of $30.00.
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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.