Cimpress plc (CMPR - Free Report) reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 34 cents per share. Cimpress incurred a loss of 97 cents per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal first quarter were $757.3 million, reflecting an increase of 7.7% from $703.4 million in the year-ago quarter. The organic constant-currency revenue growth was also 4%, driven by growth across most of its businesses. The top line missed the Zack Consensus Estimate of $771 million.
Segmental Information
The National Pen segment generated revenues of $87.3 million, up from $81.7 million in the prior-year quarter. Our estimate for the quarter was $91.2 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $396.6 million, in line with the year-ago quarter. Our estimate for the quarter was $404.3 million.
The Upload and Print segment’s revenues increased to $232.7 million from $209.5 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal first quarter, PrintBrothers’ revenues increased to $152.2 million from $132.7 million reported in the year-ago period. Our estimate for the quarter was $145.0 million.
In the fiscal first quarter, the Print Group generated revenues of $80.5 million, up from $76.8 million reported in the year-ago quarter. Our estimate for the quarter was $86.9 million. Revenues from All Other Businesses increased to $51.8 million, in line with the year-ago quarter. Our estimate for the quarter was $53.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $398.8 million, up 5.6% on a year-over-year basis. Marketing and selling expenses totaled $192.2 million, down 4.4% year over year. Total general & administrative expenses were $48.3 million, down from $54.1 million reported in the year-ago fiscal quarter.
Gross profit increased 10.1% year over year to $359 million. The margin was 47.3%, up 100 basis points. Net interest expenses rose 17.7% to $29.2 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, Cimpress had $125.2 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,473 million in the first three months of the year.
In the same time period, net cash provided by operating activities was $42.3 million against $25.3 million cash spent in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 8% and organic constant-currency revenue growth to be at least 6%.
CMPR predicts operating income to be at least $206.2 million for the fiscal year and adjusted EBITDA to be at least $425 million. The company also expects the conversion of adjusted EBITDA to adjusted free cash flow to be approximately 40% for fiscal 2024.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 15%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 1.3% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 27.9% in the past year.
Axon Enterprise, Inc. (AXON - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 60.2%, on average.
In the past 60 days, estimates for Axon’s earnings have remained steady for 2023. The stock has soared 46.1% in the past year.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank of 2. CAT’s earnings surprise in the last four quarters was 18.5%, on average.
In the past 60 days, estimates for Caterpillar’s 2023 earnings have increased 1.5%. The stock has gained 14.3% in the past year.
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Cimpress plc (CMPR - Free Report) reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 34 cents per share. Cimpress incurred a loss of 97 cents per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal first quarter were $757.3 million, reflecting an increase of 7.7% from $703.4 million in the year-ago quarter. The organic constant-currency revenue growth was also 4%, driven by growth across most of its businesses. The top line missed the Zack Consensus Estimate of $771 million.
Segmental Information
The National Pen segment generated revenues of $87.3 million, up from $81.7 million in the prior-year quarter. Our estimate for the quarter was $91.2 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $396.6 million, in line with the year-ago quarter. Our estimate for the quarter was $404.3 million.
The Upload and Print segment’s revenues increased to $232.7 million from $209.5 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal first quarter, PrintBrothers’ revenues increased to $152.2 million from $132.7 million reported in the year-ago period. Our estimate for the quarter was $145.0 million.
In the fiscal first quarter, the Print Group generated revenues of $80.5 million, up from $76.8 million reported in the year-ago quarter. Our estimate for the quarter was $86.9 million. Revenues from All Other Businesses increased to $51.8 million, in line with the year-ago quarter. Our estimate for the quarter was $53.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $398.8 million, up 5.6% on a year-over-year basis. Marketing and selling expenses totaled $192.2 million, down 4.4% year over year. Total general & administrative expenses were $48.3 million, down from $54.1 million reported in the year-ago fiscal quarter.
Gross profit increased 10.1% year over year to $359 million. The margin was 47.3%, up 100 basis points. Net interest expenses rose 17.7% to $29.2 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, Cimpress had $125.2 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,473 million in the first three months of the year.
In the same time period, net cash provided by operating activities was $42.3 million against $25.3 million cash spent in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 8% and organic constant-currency revenue growth to be at least 6%.
CMPR predicts operating income to be at least $206.2 million for the fiscal year and adjusted EBITDA to be at least $425 million. The company also expects the conversion of adjusted EBITDA to adjusted free cash flow to be approximately 40% for fiscal 2024.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 15%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 1.3% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 27.9% in the past year.
Axon Enterprise, Inc. (AXON - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 60.2%, on average.
In the past 60 days, estimates for Axon’s earnings have remained steady for 2023. The stock has soared 46.1% in the past year.
Caterpillar Inc. (CAT - Free Report) presently carries a Zacks Rank of 2. CAT’s earnings surprise in the last four quarters was 18.5%, on average.
In the past 60 days, estimates for Caterpillar’s 2023 earnings have increased 1.5%. The stock has gained 14.3% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on CAT - FREE
Get the latest research report on AIT - FREE
Get the latest research report on CMPR - FREE
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