The 10-second takeaway
For the quarter ended March 31 (Q1), Steiner Leisure beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Margins dropped across the board.
Steiner Leisure tallied revenue of $198.5 million. The three analysts polled by S&P Capital IQ looked for revenue of $194.5 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $168.0 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 $0.95. The three earnings estimates compiled by S&P Capital IQ anticipated $0.94 per share. GAAP EPS of $0.95 for Q1 were 5.6% higher than the prior-year quarter's $0.90 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 23.0%, 140 basis points worse than the prior-year quarter. Operating margin was 8.9%, 90 basis points worse than the prior-year quarter. Net margin was 7.3%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $196.8 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $809.9 million. The average EPS estimate is $3.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 94 members out of 100 rating the stock outperform, and six members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Steiner Leisure a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steiner Leisure is outperform, with an average price target of $58.50.
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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.