Quad Q3 EPS falls on higher restructuring and impairment charges

Quad/Graphics

28/10/2026 21:11

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: ID:nPnb4Crna

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.)