The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stonemor Partners missed slightly on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP loss per share dropped.
Margins improved across the board.
Stonemor Partners reported revenue of $58.7 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $59.8 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $55.8 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 -$0.16. The two earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.16 for Q4 compared to -$1.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.5%, 170 basis points better than the prior-year quarter. Operating margin was 3.9%, 370 basis points better than the prior-year quarter. Net margin was -5.3%, 4,270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $55.7 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $237.6 million. The average EPS estimate is -$0.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 342 members out of 359 rating the stock outperform, and 17 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Stonemor Partners a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stonemor Partners is outperform, with an average price target of $30.33.
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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. The Motley Fool owns shares of Stonemor Partners. Motley Fool newsletter services have recommended buying shares of Stonemor Partners. 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.