A decent quarter for new Martha Stewart co- CEOs Wenda Millard (pictured) and Robin Marino: Sales were up 5%, to $77.1 million, and after losing 13 cents a share a year ago, the company posted EPS of 5 cents (after backing out one-time chares). Those results beat Street expecations of $74.5 million and 1 cent, respectively.
Things get fuzzier after that: MSO says the second half of the year should be all over tha mp, and that “visibility… remains extremely limited, particularly in advertising.” So while the company is keeping its FY guidance unchanged, it’s pushing down Q3 revenue estimates to $65 million to $67 million, when the Street had been looking for something in the $75 million.
One particular bright spot: The Web. Revenue was up 28% to $3.2 million (an accounting change means that Martha’s flower business, once recorded as Web sales, have been shifted to the merchandise line entry), and operating and Ebitda losses improved. Page views were up 23%, and Martha says its Web outlook is getting stronger, with July page views up 50% so far.
Reports Q2 (Jun) earnings of $0.05 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.04; revenues rose 5.0% year/year to $77.1 mln vs the $74.5 mln consensus. Co issues downside guidance for Q3, sees Q3 revs of $65-67 mln vs. $75.36 mln consensus; co sees adjusted EBITDA of $3.5-4.0 mln. Co reaffirms guidance for FY08, sees FY08 revs of approx $300 mln vs. $308.70 mln consensus; co sees adjusted EBITDA of $23-28 mln.