LSC Communications, Inc. (LKSD) Misses Q1 EPS by 7c, Revenues Miss; Affirms FY19 Revenue Mid-Point Guidance Below Consensus

LSC Communications, Inc. (NYSE: LKSD) reported Q1 EPS of ($0.16), $0.07 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $845 million versus the consensus estimate of $851.73 million.

Highlights:

• Net sales of $845 million compared to $929 million in the first quarter of 2018
• Organic net sales decrease of 4.6% from the first quarter of 2018
• GAAP net loss of $126 million, or $3.79 per diluted share, compared to a net loss of $11 million, or $0.32 per diluted share in the first quarter of 2018
• Non-GAAP net loss of $5 million, or $0.16 per diluted share, compared to a non-GAAP net loss of $4 million, or $0.11 per diluted share in the first quarter of 2018
• Non-GAAP adjusted EBITDA of $42 million, or 5.0% of net sales, compared to $53 million, or 5.7% of net sales, in the first quarter of 2018

“First quarter results were consistent with our expectations,” said Thomas J. Quinlan III, LSC Communications’ Chairman, President and Chief Executive Officer. “While we continue to see weakness in demand for Magazines, Catalogs and Logistics, our Book and Office Products segments both delivered year-over-year improvement in earnings and margins for the quarter. We continue to expect to close on the previously-announced merger with Quad/Graphics, Inc. in mid-2019.”

GUIDANCE:

LSC Communications, Inc. sees FY2019 revenue of $3.55-3.65 billion, versus the consensus of $3.62 billion.

For earnings history and earnings-related data on LSC Communications, Inc. (LKSD) click here.

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