The 10-second takeaway
For the quarter ended June 30 (Q2), Stonemor Partners met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins shrank, net margins dropped.
Stonemor Partners tallied revenue of $61.5 million. The three analysts polled by S&P Capital IQ expected a top line of $61.8 million on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $60.1 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 -$0.11. The two earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share. GAAP EPS were -$0.11 for Q2 compared to $0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.0%, 110 basis points better than the prior-year quarter. Operating margin was 4.2%, 330 basis points worse than the prior-year quarter. Net margin was -3.5%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.2 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $244.0 million. The average EPS estimate is -$0.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 356 members out of 378 rating the stock outperform, and 22 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Stonemor Partners a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stonemor Partners is outperform, with an average price target of $30.33.
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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. The Motley Fool owns shares of StoneMor Partners. Motley Fool newsletter services recommend StoneMor Partners. 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.