The 10-second takeaway
For the quarter ended April 28 (Q1), Stein Mart met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Stein Mart reported revenue of $303.4 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $305.7 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $303.5 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 $0.27. The four earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.27 for Q1 were 23% lower than the prior-year quarter's $0.35 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 28.8%, 80 basis points worse than the prior-year quarter. Operating margin was 6.7%, 130 basis points worse than the prior-year quarter. Net margin was 3.9%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $276.2 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 88 members out of 142 rating the stock outperform, and 54 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Stein Mart a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stein Mart is outperform, with an average price target of $8.50.
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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.