The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Checkpoint Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share expanded. GAAP loss per share grew.
Gross margins expanded, operating margins grew, net margins dropped.
Checkpoint Systems reported revenue of $200.2 million. The one analyst polled by S&P Capital IQ anticipated net sales of $208.3 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $251.6 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 $0.09. The one earnings estimate compiled by S&P Capital IQ averaged $0.18 per share. Non-GAAP EPS were $0.09 for Q4 against -$0.10 per share for the prior-year quarter. GAAP EPS were -$0.86 for Q4 compared to -$0.47 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 39.3%, 90 basis points better than the prior-year quarter. Operating margin was 7.8%, 20 basis points better than the prior-year quarter. Net margin was -17.7%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $159.5 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $766.5 million. The average EPS estimate is $0.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 81 members out of 97 rating the stock outperform, and 16 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Checkpoint Systems a green thumbs-up, and four 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.
Looking for alternatives to Checkpoint Systems? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Checkpoint Systems 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. The Motley Fool has no position in any of the stocks mentioned. 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.