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Quad/Graphics, Inc. (QUAD)

NYSE - NYSE Delayed Price. Currency in USD
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3.8600+0.0900 (+2.39%)
At close: 04:00PM EST
3.8600 0.00 (0.00%)
After hours: 06:40PM EST
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  • H
    Huff
    I am estimating that earnings for 2021 should be around $1.50 per share conservatively, and perhaps approaching $2.00 since I understand that the 4th quarter is generally the strongest. I am trying to figure out why this stock is trading around $4.00, when I am anticipating a PE around 2.6 : 1 once the 2021 financials are released. Is there something that I am missing or are my assumptions way off? I'd be grateful for any thoughts.
  • H
    Huff
    Does anyone know why there was such a large drop in share price and trading volume yesterday?
  • D
    David and Pippa
    QUAD posted its third consecutive quarterly profit today as the company’s business returns after the pandemic. Revenues were up 4% Y/Y and they posted a profit of $0.27/share. EBITDA remained strong at $64M and was up slightly over last year. The amended and extended bank debt agreement shows confidence by the banker group that QUAD will be able to meet their debt obligations moving forward.

    Based on the guidance provided, QUAD will achieve another quarterly profit in Q4 which is historically their strongest quarter due to the holiday season. Using a conservative revenue number of $852M (+1% Y/Y), I estimate QUAD will make about $0.33/share in Q4 which would mean profits will be about $1.45/share for the full year. Debt repayment will be significant in Q4 to the tune of about a $70M reduction based upon their projected 2.75x Debt Leverage Ratio. Things appear to be trending in the right direction and I would not be surprised to see QUAD’s share price appreciate significantly in the near term.
    Bullish
  • Y
    Yahoo Finance Insights
    Quad/Graphics is down 6.97% to 3.74
  • D
    David and Pippa
    It looks like QUAD's biggest competitor, RRD, is getting some love this morning as two different funds are in a bidding war to purchase them. Atlas made an offer of $8.52/share for a EV value of $2.1B including $1.51B of debt. Chatham has already indicated they will offer an enhanced offer in the $9.00-9.50/share range. These offers are essentially valuing RRD at about 6-6.2x EV/EBITDA.

    With a similar valuation for QUAD assuming $799M of debt and $250M of EBITDA, QUAD shares should be trading in the $13.60 - $14.60/share range. At $4.23/share, QUAD is trading at a huge discount to true market value. This discrepancy will likely be corrected over time. This price will only increase as QUAD continues to pay down it debt and more of the EV shifts to the equity holders. Long QUAD.
    Bullish
  • a
    alan
    Looks like next support level. Going back to 5 soon.
  • Y
    Yahoo Finance Insights
    Quad/Graphics is down 6.81% to 3.83
  • J
    Jeffrey
    Quad/Graphics Inc., which listed its West Allis plant on a prime site near Interstate 94 nearly one year ago, sold the property for $33 million to a Los Angeles real estate investment firm.
  • J
    J
    With Tom retiring and Dave moving over to COO, it seems like this is the starting of the succession plan for Joel retiring and Dave becoming CEO. Few years away still, but D may get his wish with not having a Quadracci as CEO.
  • W
    Ward
    ZZZZZZZZ. Like watching paint dry. zero volume.
  • Y
    Yahoo Finance Insights
    Quad/Graphics is up 8.27% to 4.58
  • D
    D
    In other news, the company who bought LSC is getting ready to buy Verso, major coated paper supplier. Could be a huge thorn in Joel's side.
  • W
    Ward
    Where did the volume go? Quad should be above $5 a share. Easily. It will be, soon.
  • R
    Rasterized
  • m
    matt
    Anyone heard that Quad is closing 3 of its book plants "Temporarily" or until it's deemed safe to reopen without any warning to it's customers at least not publically. I wouldn't be surprised if it was an opportunity to exploit the pandemic to shut down the cash bleeding book plants. Odd that only the 3 books plants are closing and no other plants at Quad due to the Corona virus. Formal Email sent out to customers late Friday about it. Probably will be a positive for FCF down the road though.
    Bullish
  • S
    SteveF
    Net sales increased 3.8% during the first quarter ended March 31, 2019, to $1 billion, primarily from the impact of the Periscope acquisition. Organic sales declined 0.6% after excluding a 4.4% acquisition sales impact. The organic results reflect ongoing print industry volume and pricing pressures partially offset by an increase in paper sales.
  • T
    Taher
    Some very impressive results. Despite very tough conditions they have increased net profit by $60 million for the quarter. Compared to $57 million lost in 2019, the company earned $3 million net profit. Improved EBITDA margins from 8.4 % to 9.4% is quite impressive. Will have to wait for 10 Q to see how much revenue was from services and how much from sale of products and what were profit margins. Net sales decline was a bit more than expected. Overall mixed results, but as long as the management keeps its focus to steer the company in the right direction, quarterly earnings are not important.
  • D
    D
    Couple things to report.

    Fortress Quad laid off a bunch more people about 10 days ago, from shop floor to sales positions. These were not temporary layoffs, they were permanent. Business is expected to be much different when all this is over. Like I told you guys, this will be a $2.9 billion company by the end of 2021.

    Cari Hulings is a smart go getter, worked with her a little at her last company. Good get for Quad.
  • R
    Rich
    Print demand is shrinking and Quad has quite a few printing plants with big footprints. Amazon is always looking for space, and there is nice clear height in those Quad buildings. Just a thought.
  • D
    David
    I now believe that Quad will never have a profitable year again. Purchasing other companies that are near bankruptcy is not going to add any profits to the bottom line. Neither will consolidating more plants. Sales are falling faster than they can consolidate them. What do you think will happen here ?
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