The Gory Details on Consolidated Graphics' Double Miss
Consolidated Graphics (NYS: CGX) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Consolidated Graphics missed estimates on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Consolidated Graphics reported revenue of $283.9 million. The three analysts polled by S&P Capital IQ hoped for revenue of $300.6 million. Sales were 5.1% lower than the prior-year quarter's $299.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.17. The three earnings estimates compiled by S&P Capital IQ anticipated $1.42 per share on the same basis. GAAP EPS of $1.04 for Q3 were 31% lower than the prior-year quarter's $1.50 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, 110 basis points worse than the prior-year quarter. Operating margin was 6.9%, 290 basis points worse than the prior-year quarter. Net margin was 3.8%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $265.3 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 51 members out of 56 rating the stock outperform, and five members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Consolidated Graphics a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Consolidated Graphics is buy, with an average price target of $62.00.
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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 here. He is 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 may not 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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