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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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 of Motley 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.