Steinway Musical Instruments
The 10-second takeaway
For the quarter ended March 31 (Q1), Steinway Musical Instruments met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins expanded.
Steinway Musical Instruments logged revenue of $78.0 million. The two analysts polled by S&P Capital IQ looked for a top line of $77.5 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $72.9 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 $0.05. The two earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.05 for Q1 were 25% higher than the prior-year quarter's $0.04 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 29.7%, 160 basis points worse than the prior-year quarter. Operating margin was 2.8%, 280 basis points worse than the prior-year quarter. Net margin was 0.8%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.9 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $363.0 million. The average EPS estimate is $1.40.
The stock has a five-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 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Steinway Musical Instruments 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 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.