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.
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