The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Consolidated Graphics met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped.
Margins dropped across the board.
Consolidated Graphics recorded revenue of $263.6 million. The three analysts polled by S&P Capital IQ predicted revenue of $263.1 million on the same basis. GAAP reported sales were 1.4% lower than the prior-year quarter's $267.4 million.
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 $0.84. The one earnings estimate compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.68 for Q2 were 1.4% lower than the prior-year quarter's $0.69 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 23.1%, 60 basis points worse than the prior-year quarter. Operating margin was 4.5%, 70 basis points worse than the prior-year quarter. Net margin was 2.5%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $286.8 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 52 members out of 57 rating the stock outperform, and five members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Consolidated Graphics a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Consolidated Graphics is buy, with an average price target of $44.50.
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