The 10-second takeaway
For the quarter ended June 30 (Q2), Steiner Leisure met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.
Margins dropped across the board.
Steiner Leisure recorded revenue of $197.5 million. The four analysts polled by S&P Capital IQ foresaw sales of $196.3 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $168.4 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 $0.92. The four earnings estimates compiled by S&P Capital IQ averaged $0.92 per share. GAAP EPS of $0.92 for Q2 were 5.7% higher than the prior-year quarter's $0.87 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 23.1%, 110 basis points worse than the prior-year quarter. Operating margin was 8.6%, 10 basis points worse than the prior-year quarter. Net margin was 7.1%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $210.6 million. On the bottom line, the average EPS estimate is $1.02.
Next year's average estimate for revenue is $811.5 million. The average EPS estimate is $3.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 93 members out of 99 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Steiner Leisure a green thumbs-up, and one give it a red thumbs-down.
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.