The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Stonemor Partners met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded. The profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
Stonemor Partners reported revenue of $62.2 million. The three analysts polled by S&P Capital IQ hoped for sales of $62.6 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $60.3 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 forecast -$0.11 per share. GAAP EPS were $0.05 for Q3 against -$0.01 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 56.9%, 90 basis points better than the prior-year quarter. Operating margin was 9.9%, 130 basis points better than the prior-year quarter. Net margin was 1.7%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $64.2 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $248.4 million. The average EPS estimate is -$0.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 355 members out of 376 rating the stock outperform, and 21 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Stonemor Partners a green thumbs-up, and five 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 $29.67.
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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.