Quad Graphics (NYSE:QUAD) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Quad Graphics reported quarterly EPS of $0.25 versus $0.22 expected (beats by $0.03) while revenue came in slightly below consensus at $581.0 million; the company showed a net margin of 1.12% and an ROE of 49.71%.
• The board declared a quarterly dividend of $0.10 per share (annualized $0.40), representing a 5.1% yield with an ex-dividend date of May 21 and a payout ratio of 74.07%.
• Shares traded around $7.80 with a market cap of about $407.4M and a P/E of 14.44, and analysts hold a “Moderate Buy” consensus with a $9.93 average price target.

Quad Graphics (NYSE:QUAD - Get Free Report) released its quarterly earnings results on Tuesday. The business services provider reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.03, FiscalAI reports. The business had revenue of $581.00 million during the quarter, compared to the consensus estimate of $583.65 million. Quad Graphics had a net margin of 1.12% and a return on equity of 49.71%.

Quad Graphics Stock Performance

Shares of NYSE QUAD traded up $0.08 during mid-day trading on Tuesday, hitting $7.80. The company had a trading volume of 139,130 shares, compared to its average volume of 199,594. Quad Graphics has a 12 month low of $4.50 and a 12 month high of $7.96. The stock has a market cap of $407.37 million, a price-to-earnings ratio of 14.44 and a beta of 1.16. The company has a debt-to-equity ratio of 2.52, a current ratio of 0.86 and a quick ratio of 0.63. The firm's 50 day simple moving average is $6.97 and its two-hundred day simple moving average is $6.34.

Quad Graphics Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Thursday, May 21st. Quad Graphics's dividend payout ratio is presently 74.07%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on QUAD shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Quad Graphics in a research note on Wednesday, January 28th. Zacks Research lowered shares of Quad Graphics from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, December 30th. Wall Street Zen upgraded Quad Graphics from a "buy" rating to a "strong-buy" rating in a research note on Sunday, March 29th. Benchmark assumed coverage on Quad Graphics in a report on Tuesday, April 7th. They issued a "buy" rating and a $10.00 price objective for the company. Finally, Rosenblatt Securities increased their target price on Quad Graphics from $8.20 to $9.80 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $9.93.

Hedge Funds Weigh In On Quad Graphics

Several hedge funds and other institutional investors have recently modified their holdings of the company. CANADA LIFE ASSURANCE Co acquired a new stake in shares of Quad Graphics in the 4th quarter worth about $26,000. BNP Paribas Financial Markets increased its stake in shares of Quad Graphics by 113.1% in the third quarter. BNP Paribas Financial Markets now owns 5,688 shares of the business services provider's stock valued at $36,000 after purchasing an additional 3,019 shares during the period. Stokes Family Office LLC acquired a new stake in shares of Quad Graphics in the fourth quarter valued at approximately $68,000. HRT Financial LP bought a new stake in shares of Quad Graphics during the fourth quarter valued at approximately $74,000. Finally, Ameriprise Financial Inc. bought a new stake in shares of Quad Graphics during the third quarter valued at approximately $75,000. Institutional investors and hedge funds own 39.52% of the company's stock.

About Quad Graphics

Quad Graphics, Inc NYSE: QUAD is a global provider of print and related marketing services, serving a diverse range of clients in the publishing, retail, e-commerce and consumer packaged goods sectors. The company offers end-to-end solutions that span traditional print production, supply chain management and digital marketing support. Quad Graphics leverages a network of production facilities and distribution centers to deliver high-quality printed materials and integrated marketing programs that help clients reach their target audiences across multiple channels.

The company's core offerings include magazine and catalog printing, direct mail, retail inserts, shopper marketing materials, custom packaging and point-of-sale displays.

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