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Steiner Leisure Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

Steiner Leisure (Nasdaq: STNR) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Steiner Leisure beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped.

Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
Steiner Leisure reported revenue of $212.0 million. The three analysts polled by S&P Capital IQ expected to see net sales of $200.3 million on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $198.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.86. The three earnings estimates compiled by S&P Capital IQ forecast $0.73 per share. GAAP EPS of $0.86 for Q1 were 9.5% lower than the prior-year quarter's $0.95 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.7%, 70 basis points better than the prior-year quarter. Operating margin was 7.4%, 150 basis points worse than the prior-year quarter. Net margin was 6.0%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $206.4 million. On the bottom line, the average EPS estimate is $0.88.

Next year's average estimate for revenue is $847.3 million. The average EPS estimate is $3.36.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 102 members out of 109 rating the stock outperform, and seven members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 buy, with an average price target of $57.00.

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