NEW YORK (TheStreet) -- Quad/Graphics (QUAD - Get Report) stock is retreating 27.18% to $9.54 on heavy trading volume on Wednesday afternoon following disappointing 2015 third quarter financial results.
After the market close on Tuesday, the commercial printing company posted adjusted earnings of 14 cents per diluted share for the quarter ended September 30, missing estimates of 41 cents per share.
Revenue dropped 6.5% year-over-year to $1.16 billion for the latest quarter, falling short of estimates of $1.21 billion.
"Our third quarter financial performance was challenging and below our expectations due to a greater-than-expected pullback in industry volumes and pricing pressures that accelerated in the quarter, as well as lower productivity levels in our manufacturing platform," CEO Joel Quadracci said in a statement.
The company also announced it will cut $100 million in costs by closing plants and streamlining its organizational structure.
Additionally, Quad/Graphics lowered its 2015 revenue guidance to $4.6 billion to $4.7 billion from its previous outlook of $4.8 billion to $4.9 billion.
So far today, 1.5 million shares of Quad/Graphics have exchanged hands, compared with its average daily volume of 234,398 shares.
Separately, TheStreet Ratings team rates QUAD/GRAPHICS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate QUAD/GRAPHICS INC (QUAD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: QUADQUAD data by YCharts