The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quad/Graphics met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted. GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins increased.
Quad/Graphics reported revenue of $1.13 billion. The three analysts polled by S&P Capital IQ expected revenue of $1.12 billion on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $1.22 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 $0.84. The three earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. Non-GAAP EPS of $0.84 for Q4 were 3.4% lower than the prior-year quarter's $0.87 per share. (The prior-year quarter included -$0.34 per share in earnings from discontinued operations.) GAAP EPS were $0.39 for Q4 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 22.9%, 130 basis points worse than the prior-year quarter. Operating margin was 7.6%, 40 basis points worse than the prior-year quarter. Net margin was 1.9%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $4.53 billion. The average EPS estimate is $1.92.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 37 rating the stock outperform, and 20 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Quad/Graphics 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 Quad/Graphics is hold, with an average price target of $22.67.
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