Quad/Graphics Crushes Earnings Estimates
Quad/Graphics (NYS: QUAD) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Quad/Graphics beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins expanded.
Quad/Graphics notched revenue of $989.6 million. The two analysts polled by S&P Capital IQ expected net sales of $941.5 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.14. The two earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS were $1.01 for Q1 against -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.9%, 70 basis points worse than the prior-year quarter. Operating margin was 4.1%, 40 basis points worse than the prior-year quarter. Net margin was 4.8%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $918.9 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.80.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 28 rating the stock outperform, and 14 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Quad/Graphics a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quad/Graphics is hold, with an average price target of $16.67.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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