The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Journal Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Journal Communications booked revenue of $95.0 million. The two analysts polled by S&P Capital IQ anticipated sales of $94.8 million on the same basis. GAAP reported sales were 8.3% lower than the prior-year quarter's $103.7 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 $0.18. The two earnings estimates compiled by S&P Capital IQ averaged $0.11 per share on the same basis. GAAP EPS of $0.15 for Q4 were 42% lower than the prior-year quarter's $0.26 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 46.3%, 260 basis points worse than the prior-year quarter. Operating margin was 15.9%, 400 basis points worse than the prior-year quarter. Net margin was 8.7%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $83.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $369.8 million. The average EPS estimate is $0.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 48 members out of 68 rating the stock outperform, and 20 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Journal Communications a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Journal Communications is outperform, with an average price target of $5.50.
Over the decades, small-cap stocks like Journal Communications have prduced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Journal Communications to My Watchlist.
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.