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Cimpress (CMPR) Q4 Earnings Miss Estimates, Decline Y/Y
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Cimpress plc (CMPR - Free Report) reported fourth-quarter fiscal 2020 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
The company’s adjusted loss were $1.62 per share, wider than the Zacks Consensus Estimate of a loss of $1.24. Moreover, the bottom line deteriorated from the year-ago quarter’s adjusted earnings of $1.28 per share.
Top-Line Details
Total revenues in the fiscal fourth quarter were $429.1 million compared with $675 million in the year-ago quarter. However, the top line surpassed the consensus estimate of $421 million.
Segmental Information
The National Pen segment generated revenues of $33 million, down from $69.8 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $244.5 million, down from $360.4 million in the year-ago quarter.
The Upload and Print segment’s revenues fell to $118.9 million from $204.8 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $72.5 million from $117 million in the prior-year quarter. The Print Group generated revenues of $46.7 million, down from $88.1 million reported in the year-ago quarter. Meanwhile, revenues from All Other Businesses increased to $42.5 million from $42.2 million in the year-ago quarter.
In the quarter, Cimpress' cost of revenues was $219.6 million, down 36.3% on a year-over-year basis. It contributed 51.2% to total revenues. Total selling, general & administrative expenses declined 31.5% year over year to $133.4 million. It contributed 31.1% of revenues in the fiscal fourth quarter.
Gross profit declined 36.5% year over year to $209.5 million, with margin at 48.8%, down 10 basis points year over year. Net interest expenses surged 75.9% year over year to $27.8 million.
Balance Sheet and Cash Flow
As of Jun 30, 2020, Cimpress had $45 million in cash and cash equivalents compared with $35.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs) was $1,433.6 million, up from $1,023.6 million in the year-ago quarter.
In the fiscal fourth quarter, Cimpress refrained from buying back any shares. However, in fiscal 2020, Cimpress repurchased 5,002,018 shares for $627 million.
For fiscal 2020, net cash provided by operating activities was $338.4 million compared with $331.1 million in the previous fiscal year.
Order Trends
The company mentioned that its consolidated bookings recorded a decline of 19% on a year-over-year basis in June. For July, the company anticipates its consolidated bookings to decline roughly 5% year-over-year.
Outlook
The company has not provided earnings and revenue projections for the first quarter and fiscal 2021.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Griffon has a trailing four-quarter earnings surprise of 21.76%, on average.
AGCO has a trailing four-quarter earnings surprise of 41.73%, on average.
Avery Dennison has a trailing four-quarter earnings surprise of 7.70%, on average.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Cimpress (CMPR) Q4 Earnings Miss Estimates, Decline Y/Y
Cimpress plc (CMPR - Free Report) reported fourth-quarter fiscal 2020 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
The company’s adjusted loss were $1.62 per share, wider than the Zacks Consensus Estimate of a loss of $1.24. Moreover, the bottom line deteriorated from the year-ago quarter’s adjusted earnings of $1.28 per share.
Top-Line Details
Total revenues in the fiscal fourth quarter were $429.1 million compared with $675 million in the year-ago quarter. However, the top line surpassed the consensus estimate of $421 million.
Segmental Information
The National Pen segment generated revenues of $33 million, down from $69.8 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $244.5 million, down from $360.4 million in the year-ago quarter.
The Upload and Print segment’s revenues fell to $118.9 million from $204.8 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $72.5 million from $117 million in the prior-year quarter. The Print Group generated revenues of $46.7 million, down from $88.1 million reported in the year-ago quarter. Meanwhile, revenues from All Other Businesses increased to $42.5 million from $42.2 million in the year-ago quarter.
Cimpress plc Price, Consensus and EPS Surprise
Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote
Margin Details
In the quarter, Cimpress' cost of revenues was $219.6 million, down 36.3% on a year-over-year basis. It contributed 51.2% to total revenues. Total selling, general & administrative expenses declined 31.5% year over year to $133.4 million. It contributed 31.1% of revenues in the fiscal fourth quarter.
Gross profit declined 36.5% year over year to $209.5 million, with margin at 48.8%, down 10 basis points year over year. Net interest expenses surged 75.9% year over year to $27.8 million.
Balance Sheet and Cash Flow
As of Jun 30, 2020, Cimpress had $45 million in cash and cash equivalents compared with $35.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs) was $1,433.6 million, up from $1,023.6 million in the year-ago quarter.
In the fiscal fourth quarter, Cimpress refrained from buying back any shares. However, in fiscal 2020, Cimpress repurchased 5,002,018 shares for $627 million.
For fiscal 2020, net cash provided by operating activities was $338.4 million compared with $331.1 million in the previous fiscal year.
Order Trends
The company mentioned that its consolidated bookings recorded a decline of 19% on a year-over-year basis in June. For July, the company anticipates its consolidated bookings to decline roughly 5% year-over-year.
Outlook
The company has not provided earnings and revenue projections for the first quarter and fiscal 2021.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Griffon Corporation (GFF - Free Report) , AGCO Corporation (AGCO - Free Report) and Avery Dennison Corporation (AVY - Free Report) . While Griffon and AGCO currently sport a Zacks Rank #1 (Strong Buy), Avery Dennison carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Griffon has a trailing four-quarter earnings surprise of 21.76%, on average.
AGCO has a trailing four-quarter earnings surprise of 41.73%, on average.
Avery Dennison has a trailing four-quarter earnings surprise of 7.70%, on average.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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