Article on Motley Fool about American Reprographics Co (ARC)

By Seth Jayson, The Motley Fool

Posted 10:40AM 05/24/12 

American Reprographics (NYS: ARC) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway


For the quarter ended March 31 (Q1), American Reprographics missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share improved.

Gross margin dropped, operating margin improved, and net margin dropped.

Revenue details


American Reprographics reported revenue of $103.6 million. The three analysts polled by S&P Capital IQ foresaw sales of $106 million on the same basis. GAAP-reported sales were 2.8% lower than the prior-year quarter's $106.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details


EPS came in at $0. The two earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS were -$0.11 for Q1, against -$0.08 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details


For the quarter, gross margin was 30.8%, 50 basis points worse than the prior-year quarter. Operating margin was 3.7%, 290 basis points better than the prior-year quarter. Net margin was -4.7%, 130 basis points worse than the prior-year quarter.

Looking ahead


Next quarter's average estimate for revenue is $113 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $431.1 million. The average EPS estimate is $0.09.

Investor sentiment


The stock has a four-star rating (out of five) at Motley Fool CAPS, with 566 members rating the stock outperform and 36 members rating it underperform.

Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give American Reprographics a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Reprographics is outperform, with an average price target of $9.17.

Over the decades, small-cap stocks like American Reprographics have provided market-beating returns, provided they're value-priced and have solid businesses.