This article has been corrected. The original article claimed that an insurance settlement was received in the first quarter of 2007, when it was actually booked in the first quarter of 2006. Rick apologizes profusely.

I've been spoiled by Steiner Leisure (NASDAQ:STNR) over the years. I don't necessarily mean as a customer, even though my only two encounters with spa treatment have been through Steiner on a Disney (NYSE:DIS) cruise ship. (Great stuff, by the way.) Instead, I'm talking about the way Steiner has blown away market expectations since it was tapped as a Rule Breakers newsletter selection three years ago.

The stock has doubled since my initial recommendation, though the company has begun to look pretty mortal lately. Sure, Steiner is still beating market profit estimates, but it relied on a tax benefit during last year's fourth quarter to beef up the bottom line. Last night, the company earned $0.62 a share from continuing operations, coming in just a penny ahead of the $0.61 per share that Wall Street was expecting.

Revenue inched 18% higher to hit $123.7 million, though a small chunk of that came from timely acquisitions, which more than doubled Steiner's spa-therapy training school revenues to $11.9 million.

Among the things I didn't like about last night's report, the daily revenue per staff member dipped during the quarter. Sliding from $460 to $455 isn't a whole lot, but it continues a trend that first reared its well-massaged noggin in last year's fourth quarter. Until then, Steiner had been able to inch that metric higher every quarter, like clockwork.

With all the bad stuff out of the way, I still like Steiner. Industry dynamics still work in the company's favor. Cruise lines like Carnival (NYSE:CCL), NCL, and Royal Caribbean (NYSE:RCL) continue to add new, bigger ships. Overcapacity may bring on fare-war headaches for the cruise ships, but Steiner doesn't have to discount its treatments as it pampers a wider audience. Steiner works out of 130 of the largest cruise ships, and that number will continue to grow.

Steiner also runs 54 resort spas for partner hoteliers like Hilton (NYSE:HLT) and Marriott (NYSE:MAR). This is a much smaller business for Steiner -- with more landlubber rivals -- but it's there in case cruising falls out of favor.

Trading at just 15 times next year's earnings, it's a ride I'm still willing to take, even with the rough seas that have been kicking up lately.

If you want to read Rick's original buy report for Steiner and all of the updates along the way, take advantage of a 30-day guest pass that will grant you a trial subscription to the Motley Fool Rule Breakers service.

Disney is a Motley Fool Stock Advisor newsletter recommendation.

Longtime Fool contributor Rick Munarriz will never be confused with a metrosexual -- his shoes don't even match at the moment -- but he has taken in a pair of Steiner spa treatments on the Disney Magic. He does not own shares in any of the companies in this story, save for Disney. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.