Checkpoint Systems
The 10-second takeaway
For the quarter ended Sep. 23 (Q3), Checkpoint Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.
Margins grew across the board.
Revenue details
Checkpoint Systems reported revenue of $188.2 million. The one analyst polled by S&P Capital IQ looked for net sales of $198.0 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $218.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.02. The one earnings estimate compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were -$0.13 for Q3 compared to -$1.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 38.3%, 90 basis points better than the prior-year quarter. Operating margin was 4.1%, 10 basis points better than the prior-year quarter. Net margin was -2.8%, 1,980 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $222.3 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $781.0 million. The average EPS estimate is $0.09.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 78 members out of 94 rating the stock outperform, and 16 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Checkpoint Systems a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Checkpoint Systems is buy, with an average price target of $14.00.
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