The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quad/Graphics beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Quad/Graphics logged revenue of $1.31 billion. The three analysts polled by S&P Capital IQ expected to see a top line of $1.28 billion on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $1.26 billion.
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 $0.87. The three earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS were -$0.15 for Q4 against $0.55 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 24.2%, 40 basis points worse than the prior-year quarter. Operating margin was 8.0%, 130 basis points worse than the prior-year quarter. Net margin was -0.6%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $941.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 26 rating the stock outperform, and 12 members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Quad/Graphics a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quad/Graphics is hold, with an average price target of $18.67.
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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.