Marketing experience firm Quad Q3 net sales miss estimates on Europe operations divestiture

Reuters
Oct 29
Marketing experience firm Quad Q3 net sales miss estimates on Europe operations divestiture

Overview

  • Quad Q3 net sales fell 13% yr/yr, missing analyst expectations, per LSEG data

  • Adjusted EPS for Q3 beats consensus, rising 19% yr/yr

  • Company returned $19 mln to shareholders through dividends and share repurchases

Outlook

  • Quad narrows full-year 2025 adjusted net sales decline to 3% to 5%

  • Company expects 2025 adjusted EBITDA between $190 mln and $200 mln

  • Quad anticipates 2025 free cash flow of $50 mln to $60 mln

Result Drivers

  • EUROPEAN DIVESTITURE - Net sales decline partly due to 6% impact from divestiture of European operations

  • AI INVESTMENTS - Co invests in AI-powered tools to enhance audience intelligence and drive future growth

  • IN-STORE CONNECT - Co builds momentum for In-Store Connect retail media network to increase brand and product sales

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Sales

Miss

$588 mln

$605.15 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.31

$0.27 (2 Analysts)

Q3 Net Income

$10 mln

Q3 Adjusted EBITDA

$53 mln

Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "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 $9.30, about 36.1% above its October 27 closing price of $5.94

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPnY2sDXa

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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.)

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