Stewart Enterprises Earnings: Here’s Why Investors Don’t Like These Results

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. Shares are down 0.31%.

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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: Mr. Kitchen concluded, “Our balance sheet and liquidity remain strong with $103.4 million in cash and marketable securities on hand as of April 30, 2013, with no amounts borrowed on our $150 million credit facility. For the first six months of fiscal year 2013, we have generated $45 million in operating cash flow. We believe our ability to consistently produce strong cash flow is one of the many reasons why SCI is paying a significant premium for the Company.”

Key Stats (on next page)…

Revenue decreased 1.31% from $135.68 million in the previous quarter. EPS decreased 0% from $0.15 in 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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