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/Mis Actual Consensu

s s

Estimate

Q3 Net Miss $588 mln $605.15

Sales mln (2

Analysts

)

Q3 Beat $0.31 $0.27 (2

Adjusted Analysts

EPS )

Q3 Net $10 mln

Income

Q3 $53 mln

Adjusted

EBITDA

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 ( QUAD ) 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:

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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.)