Quad Q3 EPS falls on higher restructuring and impairment charges
Overview
US marketing experience firm's Q3 sales were flat yr/yr but slightly beat analyst expectations
Quad's Q3 net earnings and diluted EPS fall yr/yr
Company returned $23 mln to shareholders year-to-date via dividends and buybacks
Outlook
Quad now expects 2026 net sales to decline 1% to 3%
Company narrows 2026 adjusted EBITDA forecast to $185 mln-$195 mln from $175 mln-$215 mln
Company says it is monitoring macroeconomic uncertainties and managing costs to offset rising expenses
Result Drivers
SALES MIX - Net sales flat due to higher logistics sales, offset by lower print volumes and agency solutions
RESTRUCTURING CHARGES - Net earnings and EPS declined mainly due to higher restructuring, impairment and transaction-related charges
PRODUCTIVITY INITIATIVES - Automation and cost management helped drive productivity and support margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $586.7 mln | $583.37 mln (3 Analysts) |
Q3 Adjusted EPS | Miss | $0.35 | $0.38 (2 Analysts) |
Q3 Net Earnings | $5.5 mln | ||
Q3 Adjusted EBITDA | $51.1 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commercial printing services peer group is "buy"
Wall Street's median 12-month price target for Quad/Graphics Inc is $13.00, about 38.3% above its October 28 closing price of $9.40
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)