Steinway Musical Instruments
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steinway Musical Instruments beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Steinway Musical Instruments reported revenue of $100.7 million. The one analyst polled by S&P Capital IQ predicted revenue of $99.5 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $94.6 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 $0.53. The one earnings estimate compiled by S&P Capital IQ anticipated $0.59 per share. Non-GAAP EPS of $0.53 for Q4 were 121% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.51 for Q4 were 96% higher than the prior-year quarter's $0.26 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 34.5%, 250 basis points better than the prior-year quarter. Operating margin was 11.9%, 420 basis points better than the prior-year quarter. Net margin was 6.3%, 290 basis points better than the prior-year quarter.
Next year's average estimate for revenue is $372.6 million. The average EPS estimate is $1.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 62 members out of 67 rating the stock outperform, and five members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Steinway Musical Instruments a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steinway Musical Instruments is hold, with an average price target of $25.00.
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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 has no position in any of the stocks mentioned. 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.
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