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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.

Cimpress plc Price, Consensus and EPS Surprise

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.

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