Consolidated Graphics Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of commercial print-service specialist Consolidated Graphics (NYSE: CGX  ) ran out of ink on Wednesday, falling as far as 21.8% on more than four times their average daily trading volume.

So what: In the just-reported first quarter, sales increased by 2.8% year over year to $243 million and adjusted earnings climbed 13% to $0.43 per share -- in both cases far below analyst estimates. Next-quarter guidance was also timid as management outlined mild year-over-year gains on both the top and bottom lines.

Now what: Industry peers R.R. Donnelley & Sons (NYSE: RRD  ) and Quad/Graphics (Nasdaq: QUAD  ) also saw steep declines on Wednesday while fourth Musketeer Cenveo (NYSE: CVO  ) held up a bit better. It bears mentioning that R.R also missed Street targets today while the other two report earnings next week. Meanwhile, Vistaprint (Nasdaq: VPRT  ) jumped more than 6% today, making up some lost ground from its own terrible-earnings plunge last week. In short, print services is a deeply troubled industry at the moment, fit for investments only by real risk-chasers and bottom-fishers.

Interested in more info on Consolidated Graphics? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of Vistaprint. Motley Fool newsletter services have recommended buying shares of Vistaprint. Yes, we have newsletters that actually focus on high-risk investments. 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 is investors writing for investors.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1532536, ~/Articles/ArticleHandler.aspx, 12/19/2014 1:21:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement