Abstract: Apparatus and method for stacking sheets which are spaced apart on a conveyor. Two oppositely rotatable holders alternately receive the sheets from the conveyor and the holders have sheet engagers which move the sheets around to stack the sheets with the folds of sequential sheets in opposite directions in the stack to thus form a compensated stack relative to the folds. A receiver handles the stack, and it has a carrier for moving the stack away from the holders and it has an interceptor for initially receiving and forming the stack while the carrier is depositing the previous stack. Electrical apparatus, including sheet counters and drivers and control means for the holders, and switches and control means for the carrier and the interceptor, are all electrically interconnected for forming the stack in a certain counted number of sheets and for moving each stack. The method includes the steps mentioned above.