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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