The 10-second takeaway
For the quarter ended March 31 (Q4), Consolidated Graphics met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share expanded significantly. GAAP loss per share dropped.
Margins grew across the board.
Consolidated Graphics logged revenue of $251.0 million. The three analysts polled by S&P Capital IQ expected revenue of $250.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.79. The two earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. Non-GAAP EPS of $0.79 for Q4 were 243% higher than the prior-year quarter's $0.23 per share. GAAP EPS were -$0.03 for Q4 versus -$0.57 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 23.7%, 170 basis points better than the prior-year quarter. Operating margin was 0.3%, 290 basis points better than the prior-year quarter. Net margin was -0.1%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $238.1 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $3.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 52 members out of 56 rating the stock outperform, and four members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 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 $51.50.
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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.