American Reprographics Beats Expectations but Loses Ground Anyway
American Reprographics (NYS: ARC) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), American Reprographics missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share improved.
Gross margin dropped, operating margin improved, and net margin dropped.
American Reprographics reported revenue of $103.6 million. The three analysts polled by S&P Capital IQ foresaw sales of $106 million on the same basis. GAAP-reported sales were 2.8% lower than the prior-year quarter's $106.5 million.
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 $0. The two earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS were -$0.11 for Q1, against -$0.08 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 30.8%, 50 basis points worse than the prior-year quarter. Operating margin was 3.7%, 290 basis points better than the prior-year quarter. Net margin was -4.7%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $113 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $431.1 million. The average EPS estimate is $0.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 566 members rating the stock outperform and 36 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give American Reprographics a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Reprographics is outperform, with an average price target of $9.17.
Over the decades, small-cap stocks like American Reprographics have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add American Reprographics to My Watchlist.
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. The Motley Fool owns shares of American Reprographics. Motley Fool newsletter services have recommended buying shares of American Reprographics. 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.