Quad/Graphics Reports Stronger-Than-Expected Earnings

Company Surpasses Earnings Estimates Again

Quad/Graphics (QUAD) reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.20 per share. This marks a notable increase from earnings of $0.11 per share from the same period last year. These results are adjusted for non-recurring items.

This earning report signifies a surprise of 30%. In the previous quarter, analysts expected the company to post earnings of $0.07 per share, but it delivered $0.12, resulting in a 71.43% surprise.

Consistent Performance Over the Past Year

Over the last four quarters, Quad/Graphics has consistently exceeded consensus earnings per share (EPS) estimates.

For the quarter ending September 2024, the company recorded revenues of $674.8 million, which outperformed the Zacks Consensus Estimate by 3.04%. Though this is lower than last year’s revenue of $700.2 million, it reflects the company’s ability to beat expectations in three out of the past four quarters.

Going forward, the sustainability of the stock’s price movement will heavily depend on management’s comments during the upcoming earnings call.

Since the beginning of the year, Quad/Graphics shares have declined about 5.7%, while the S&P 500 has appreciated by 21.8%.

What Lies Ahead for Quad/Graphics?

Although Quad/Graphics has underperformed relative to the market this year, investors are now asking: what’s next for the stock?

Evaluating the company’s earnings outlook may provide answers. This assessment includes current consensus earnings expectations for future quarters and changes in these expectations.

Research indicates a strong link between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions independently or use tools like the Zacks Rank, known for its accuracy in reflecting earnings estimate changes.

On the eve of this earnings release, the estimates for Quad/Graphics show mixed trends. Despite possible changes in response to the latest earnings report, the stock currently holds a Zacks Rank of #3 (Hold), suggesting it will likely perform in line with the market. Detailed lists of Zacks #1 Rank (Strong Buy) stocks are available for review.

It will be noteworthy to see how estimates for the upcoming quarters and the current fiscal year evolve in the coming days. Currently, the consensus EPS estimate for the next quarter stands at $0.34, with anticipated revenues of $748.5 million, and $0.76 EPS with revenues of $2.69 billion projected for the current fiscal year.

Investors should also consider how industry trends may influence stock performance. The Commercial Printing sector is currently ranked in the top 11% of over 250 Zacks industries, indicating potential for growth as historically, the top 50% of Zacks-ranked industries outperform the bottom by a factor of more than 2 to 1.

Comparative Industry Insights

Another player in the same industry, ARC Document Solutions (ARC), has not yet reported its results for the quarter ending September 2024.

It is expected to announce quarterly earnings of $0.06 per share, reflecting a 14.3% decrease year-over-year. Additionally, the revenue forecast for ARC is $72.31 million, indicating a 1.8% increase from the prior year’s figures.

Is Investing in Quad/Graphics a Smart Move?

Before making investment decisions regarding Quad/Graphics (QUAD), you may want to explore the best stocks to buy over the next 30 days. For insights, Zacks Investment Research offers a free report on the 7 best stocks.

Since 1978, Zacks Investment Research has provided tools and independent research to help investors. The Zacks Rank stock-rating system has historically outperformed the S&P 500, achieving an average annual gain of +24.08% from January 1, 1988, through May 6, 2024.

For the latest recommendations from Zacks Investment Research, you can download 5 Stocks Set to Double for free. Additional stock analysis reports for Quad Graphics, Inc (QUAD) and ARC Document Solutions, Inc. (ARC) are also available.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.