The 10-second takeaway
For the quarter ended March 31 (Q1), Quad/Graphics beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins expanded.
Quad/Graphics notched revenue of $989.6 million. The two analysts polled by S&P Capital IQ expected net sales of $941.5 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.10 billion.
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 $1.14. The two earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS were $1.01 for Q1 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 21.9%, 70 basis points worse than the prior-year quarter. Operating margin was 4.1%, 40 basis points worse than the prior-year quarter. Net margin was 4.8%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $918.9 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.80.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 28 rating the stock outperform, and 14 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Quad/Graphics 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 Quad/Graphics is hold, with an average price target of $16.67.
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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. He is the 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 don't 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.