NYSE$QUAD

Quad/Graphics Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Quad experienced growth, achieving eight consecutive quarters of year-over-year growth with net sales increasing by 3%.

Quad reported a 3% increase in net sales for Q1 2023, driven by higher print product sales in the United States and Mexico, and increased Agency Solutions sales. The company's adjusted diluted earnings per share increased to $0.15, and they reaffirmed their full-year 2023 financial guidance.

  • Net Sales increased 3% due to higher print product sales in the United States and Mexico, and increased Agency Solutions sales.
  • Adjusted EBITDA grew by $11 million, or 24%, to $60 million.
  • Adjusted Diluted Earnings Per Share increased to $0.15 compared to $0.04 in the same quarter last year.
  • The company returned value to shareholders by repurchasing over 5% of total outstanding common stock since Q2 2022 for $10.3 million.

Headline financials

Total Revenue

$767M

Previous: $744M+3.0%
EPS (adj)

$0.15

Previous: $0.04+275.0%
Capital Expenditures

-$28.7M

Previous: -$19.1M-50.3%
Free Cash Flow

-$53.3M

Previous: -$20.1M-165.2%
Net Income

-$24.6M

Previous: -$1M-2360.0%
Operating Income

$100K

Previous: $5.4M-98.1%
Gross Profit

$149M

Previous: $125M+19.6%
Cash & Equivalents

$8.7M

Previous: $138M-93.7%
Total Assets

$1.63B

Previous: $1.84B-11.5%
Stock-Based Comp

$1M

Previous: $1.9M-47.4%

Revenue & EPS history

Quad · Revenue · Quarterly

$767M

Q1 2023+3%vs Q1 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Quad · $767M total across 2 segments · Q1 2023

  • United States Print and Related Services
    $658M+1.0%
  • International
    $109M+17.0%

Forward guidance

Quad reaffirms its full-year 2023 financial guidance, expecting to achieve the low end of its long-term targeted debt leverage range of 2.0x-2.5x by the end of 2023.

Tailwinds

  • The company anticipates continued momentum from clients embracing integrated marketing offerings.
  • Disciplined cost management is expected to contribute to financial performance.
  • Quad aims to prioritize investing in growth.
  • The company intends to opportunistically repurchase shares.
  • Quad plans to reduce debt.

Headwinds

  • Lower anticipated print volumes are expected during the remainder of the year.
  • There is continued economic uncertainty.
  • Annual Net Sales Change is expected to be 0% to 5% decline.
  • Full-Year Adjusted EBITDA is expected to be $210 million to $250 million.
  • Capital Expenditures are expected to be $65 million to $75 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.3%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-3.0%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+33.9%

Q4 2017

Best reaction

-55.3%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.7%+1.8%-4.9%
Q4 2025+0.9%+6.7%-0.6%
Q3 2025-12.3%-10.7%-5.4%
Q1 2025-7.9%+6.0%+12.5%
Q4 2024+10.8%-11.8%-21.7%
Q3 2024+14.9%+24.5%+41.7%
Q2 2024-19.3%-26.0%-17.7%
Q1 2024-1.5%+4.6%+0.0%
Q4 2023-9.5%-17.8%-18.6%
Q3 2023-14.1%-9.5%-7.2%
Q2 2023-12.5%-4.6%-13.7%
Q1 2023-10.0%-17.3%-1.8%
Q4 2022+7.0%+21.4%-2.8%
Q3 2022+14.0%+18.0%+34.5%
Q2 2022+8.1%+9.4%+1.6%
Q1 2022-24.6%-25.2%-35.2%
Q4 2021+2.0%+9.8%+33.4%
Q3 2021+14.5%+8.1%-7.4%
Q2 2021+10.6%+37.9%+19.5%
Q1 2021-3.2%-13.7%-0.8%
Q4 2020-2.3%-16.7%-25.5%
Q3 2020-4.3%-6.1%+45.5%
Q2 2020+6.4%+4.5%+3.0%
Q1 2020-0.6%+9.4%+12.0%
Q4 2019+20.5%+14.7%-26.4%
Q3 2019-55.3%-57.3%-58.7%
Q2 2019+33.5%+34.5%+7.4%
Q1 2019-10.0%-9.0%-29.8%
Q4 2018+11.8%+8.3%-20.0%
Q3 2018-7.0%-11.9%-10.2%
Q2 2018+22.9%+8.5%+13.1%
Q1 2018-15.3%-25.5%-20.0%
Q4 2017+33.9%+25.6%+15.5%
Q3 2017+2.0%+4.5%+2.4%
Q2 2017-10.7%-14.2%-15.1%
Q1 2017+5.0%-1.6%-15.2%
Q4 2016-4.2%+4.0%-9.3%
Q3 2016+0.6%+1.8%+2.7%
Q2 2016+12.8%+14.0%+6.8%
Q1 2016+24.5%
Q4 2015+3.9%
Q3 2015-25.6%
Q2 2015-5.7%
Q1 2015-1.5%
Q4 2014+3.9%
Q3 2014-1.0%
Q2 2014-1.2%
Q1 2014-2.1%
Q4 2013-5.4%
Q3 2013-19.3%
Q2 2013+4.2%
Q1 2013+5.5%
Q4 2012+4.3%
Q3 2012-12.3%
Q2 2012-4.9%
Q1 2011+5.0%
Q1 2012+5.6%
Q4 2009+10.1%
Q4 2011+10.1%
Q3 2011+1.4%
Q2 2011+11.0%
Q4 2010+11.0%
Q3 2010-1.6%
Q2 2010+1.9%
Q1 2010

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro