The 10-second takeaway
For the quarter ended April 30 (Q2), Stewart Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped.
Gross margins expanded, operating margins grew, and net margins dropped.
Stewart Enterprises reported revenue of $132.6 million. The five analysts polled by S&P Capital IQ anticipated sales of $129.0 million on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $129.7 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 $0.13. The five earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.10 for Q2 were 9.1% lower than the prior-year quarter's $0.11 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 22.0%, 220 basis points better than the prior-year quarter. Operating margin was 17.6%, 260 basis points better than the prior-year quarter. Net margin was 6.6%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $125.3 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $510.3 million. The average EPS estimate is $0.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 137 members rating the stock outperform and 12 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 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 $8.88.
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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.