What to Expect from ARC Document Solutions

Seth Jayson, The Motley Fool
Updated

ARC Document Solutions (NYS: ARC) is expected to report Q2 earnings on Aug. 6. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ARC Document Solutions's revenues will decrease -2.0% and EPS will increase 100.0%.

The average estimate for revenue is $104.1 million. On the bottom line, the average EPS estimate is $0.04.


Revenue details
 Last quarter, ARC Document Solutions reported revenue of $100.0 million. GAAP reported sales were 3.4% lower than the prior-year quarter's $103.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 Last quarter, EPS came in at $0.01. GAAP EPS were $0.01 for Q1 compared to -$0.11 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
 For the preceding quarter, gross margin was 32.4%, 160 basis points better than the prior-year quarter. Operating margin was 6.9%, 320 basis points better than the prior-year quarter. Net margin was 0.4%, 510 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $401.1 million. The average EPS estimate is $0.08.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 520 members out of 558 rating the stock outperform, and 38 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give ARC Document Solutions a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ARC Document Solutions is outperform, with an average price target of $6.00.

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The article What to Expect from ARC Document Solutions originally appeared on Fool.com.

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 Arcos Dorados. 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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