VistaPrint Up on Strong Earnings

Shares of VistaPrint (VPRT) Climb on Strong Earnings

Shares of Buy-rated VistaPrint Limited (VPRT) are up more than 30% this morning after reminding investors that it is, in fact, still possible for a company to report earnings that beat the Street. The company did just that, and simultaneously raised full-year guidance.

VistaPrint is a leading online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. The company reported very impressive second-quarter results, boosted by strong holiday sales, lower material costs, and improved efficiency. GAAP earnings of $0.42 per share were up 75% year-over-year, and were $0.13 above our expectation.

VistaPrint has generated significant organic growth over the last several years, and we expect the trend to continue. The company has several competitive advantages that we expect will enable it to outperform its peers and take market share during this economic downturn.

The fact that VPRT posted such an impressive quarter in the midst of extremely challenging economic conditions bodes well for the company's potential ability to weather the recession, in our opinion. We reiterate our Buy rating and $25 price target.

Read the full analyst report on VPRT

Read the full analyst report on VPRT