The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Stewart Enterprises missed estimates on revenue and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share expanded.
Gross margin contracted, operating margin dropped, and net margin expanded.
Stewart Enterprises reported revenue of $124.8 million. The three analysts polled by S&P Capital IQ anticipated sales of $131.3 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $129.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.10 for Q1 were 11% higher than the prior-year quarter's $0.09 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 20.3%, 160 basis points worse than the prior-year quarter. Operating margin was 14.8%, 220 basis points worse than the prior-year quarter. Net margin was 6.8%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $132.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $525.8 million. The average EPS estimate is $0.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 146 rating the stock outperform, and 13 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Stewart Enterprises a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stewart Enterprises is outperform, with an average price target of $8.40.
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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.