Stewart Enterprises Earnings: Everything You Must Know Now

Stewart Enterprises Inc. (NASDAQ:STEI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Stewart Enterprises Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.38% to $0.15 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 0.98% to $133.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stewart Enterprises Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company beat the mean analyst estimate of $0.14. It missed the average revenue estimate of $136.22 million.

Quoting Management: Thomas M. Kitchen, President and Chief Executive Officer, stated, “The previously announced definitive merger agreement by Service Corporation International (“SCI”) is evidence of the value we have created in the Company, and we are pleased to see that benefit recognized for our shareholders. We will continue to operate the business with a high degree of performance and believe that fiscal year 2013 is off to a strong start. For the six months ended April 30, 2013, we improved adjusted earnings from continuing operations by 27 percent and adjusted earnings per share by 30 percent. These improvements were driven by a $12 million increase in revenue and a $10 million increase in gross profit, which reflects the highest six months of revenue and gross profit in six years. We are pleased with our second quarter results which include an increase in gross profit by 10 percent, adjusted earnings from continuing operations by 13 percent and adjusted earnings per share by 15 percent as compared to the second quarter of 2012. Our funeral business benefitted from an improvement in same-store calls for the fourth consecutive quarter, which contributed to a 3 percent improvement in funeral revenue compared to the second quarter of last year. Overall our cemetery business produced a 29 percent improvement in gross profit, primarily from an increase in our revenue related to trust activities, combined with a reduction in our expenses throughout the quarter.”

Key Stats (on next page)…

Revenue decreased 1.31% from $135.68 million in the previous quarter. EPS were the same at $0.15 as the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.12 to a profit $0.13. For the current year, the average estimate has moved up from a profit of $0.51 to a profit of $0.54 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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