Consolidated Graphics Slashes 4th-quarter Outlook

HOUSTON (AP) — Commercial printer Consolidated Graphics Inc. cut its fiscal fourth-quarter outlook Friday, citing "the worst overall business environment" since the company was founded in 1985.

For the three months ended March 31, Consolidated Graphics said it now expects revenue between $240 million and $250 million, down from its prior forecast for a range of $255 million to $275 million. The forecast represents a 13 percent to 17 percent revenue decline from the $288 million it posted in last year's fourth quarter.

Consolidated Graphics expects earnings per share of 5 cents to 15 cents, a sharp drop from the 35 cents to 55 cents it previously predicted, and a fraction of the $1.15 per share it reported last year.

The company's same-store sales, or sales in stores open at least a year, are expected to drop 20 percent to 25 percent for the March quarter, excluding the effect of election related business. That's compared to management's previously expected decline of 12 percent to 18 percent.

Same-store sales is a key gauge of a company's health, because it compares growth at existing locations, rather than from expansion.