Consolidated Graphics, Inc. (NYSE:CGX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Consolidated Graphics, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 243.48% to $0.79 in the quarter versus EPS of $0.23 in the year-earlier quarter.
Revenue: Rose 0.18% to $251 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Consolidated Graphics, Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.42. It missed the average revenue estimate of $252.8 million.
Quoting Management: Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics, commented “We continue to see growth in several key areas of the commercial printing industry. For example, our temporary point of sale product revenues are growing and Consolidated Graphics is in a unique position to deliver these unmatched solutions to customers. These solutions include our ability to distribute and then print consistent and high quality products across our platform. Using our solutions, customers can get to market faster, at an overall lower cost. Other key growth areas for Consolidated Graphics include digital print, packaging, fulfillment and collectible cards. These product areas, which represent 38% of our overall sales, all grew compared to last year and we expect these trends to continue going forward. We will continue to invest and enhance our capabilities in these areas.”
Key Stats (on next page)…
Revenue decreased 15% from $295.28 million in the previous quarter. EPS decreased 53.8% from $1.71 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.17. For the current year, the average estimate has moved up from a profit of $2.35 to a profit of $3.00 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)