The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Consolidated Graphics beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins increased.
Consolidated Graphics reported revenue of $295.3 million. The three analysts polled by S&P Capital IQ looked for a top line of $285.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.75. The one earnings estimate compiled by S&P Capital IQ forecast $1.27 per share. GAAP EPS of $1.68 for Q3 were 62% higher than the prior-year quarter's $1.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, about the same as the prior-year quarter. Operating margin was 7.9%, 90 basis points better than the prior-year quarter. Net margin was 5.5%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $250.5 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.43.
The stock has a three-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 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Consolidated Graphics a green thumbs-up, and one 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 $44.00.
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