The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cenveo missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP loss per share grew.
Margins dropped across the board.
Cenveo reported revenue of $486.5 million. The one analyst polled by S&P Capital IQ predicted revenue of $501.8 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $460.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.29. The two earnings estimates compiled by S&P Capital IQ forecast $0.19 per share on the same basis. GAAP EPS were -$0.23 for Q4 against -$0.15 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 20%, 10 basis points worse than the prior-year quarter. Operating margin was 8.8%, 50 basis points worse than the prior-year quarter. Net margin was -3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $518.2 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $0.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 95 members rating the stock outperform and 18 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Cenveo a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cenveo is buy, with an average price target of $11.50.
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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.