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Cimpress plc (CMPR - Free Report) reported better-than-expected first-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The company reported adjusted earnings of 9 cents per share, beating the Zacks Consensus Estimate of a loss of 12 cents by 175%. The bottom line improved from the year-ago quarter’s loss of 41 cents per share.
The company’s shares gained 3.2% yesterday to eventually close the trading session at $89.65.
Top-Line Details
Total revenues in the fiscal first quarter were $657.6 million, reflecting an increase of 12.1% from $586.5 million in the year-ago quarter. The top line surpassed the consensus estimate of $645 million by 1.9%.
The National Pen segment generated revenues of $69.3 million, up from $67.6 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $349.5 million, up from $329.3 million in the year-ago quarter.
The Upload and Print segment’s revenues increased to $198 million from $166.3 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $125.4 million from $100.1 million in the prior-year quarter. The Print Group generated revenues of $72.8 million, up from $66.4 million. Revenues from All Other Businesses increased to $47.9 million from $43.5 million.
Margin Details
In the quarter, Cimpress' cost of revenues was $339 million, up 13.5% on a year-over-year basis. It represented 51.6% of total revenues. Total selling, general & administrative expenses were $221.2 million, up 22.9%. It represented 33.6% of total revenues in the fiscal first quarter.
Gross profit increased 10.7% year over year to $318.6 million with a margin of 48.4%, down 70 basis points. Net interest expenses fell 15.7% to $25.7 million.
Balance Sheet and Cash Flow
As of Sep 30, 2021, Cimpress had $193.2 million in cash and cash equivalents compared with $183 million at the end of the previous quarter. Also, the company’s total debt (net of issuance costs) was $1,729.7 million, down from $1,742.4 million, sequentially. In the fiscal first quarter, Cimpress refrained from buying back shares.
In the first three months of fiscal 2022, net cash provided by operating activities was $36.6 million compared with $105.7 million in the year-ago period.
Outlook
The company anticipates benefiting from end-market recovery in the quarters ahead. Also, it expects to significantly increase its organic growth investment in fiscal 2022.
For fiscal 2022, Cimpress is likely to incur capital expenditures, primarily for investment in product innovation and launches.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
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Cimpress (CMPR) Q1 Earnings & Revenues Surpass Estimates
Cimpress plc (CMPR - Free Report) reported better-than-expected first-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The company reported adjusted earnings of 9 cents per share, beating the Zacks Consensus Estimate of a loss of 12 cents by 175%. The bottom line improved from the year-ago quarter’s loss of 41 cents per share.
The company’s shares gained 3.2% yesterday to eventually close the trading session at $89.65.
Top-Line Details
Total revenues in the fiscal first quarter were $657.6 million, reflecting an increase of 12.1% from $586.5 million in the year-ago quarter. The top line surpassed the consensus estimate of $645 million by 1.9%.
Cimpress plc Price, Consensus and EPS Surprise
Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote
Segmental Information
The National Pen segment generated revenues of $69.3 million, up from $67.6 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $349.5 million, up from $329.3 million in the year-ago quarter.
The Upload and Print segment’s revenues increased to $198 million from $166.3 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $125.4 million from $100.1 million in the prior-year quarter. The Print Group generated revenues of $72.8 million, up from $66.4 million. Revenues from All Other Businesses increased to $47.9 million from $43.5 million.
Margin Details
In the quarter, Cimpress' cost of revenues was $339 million, up 13.5% on a year-over-year basis. It represented 51.6% of total revenues. Total selling, general & administrative expenses were $221.2 million, up 22.9%. It represented 33.6% of total revenues in the fiscal first quarter.
Gross profit increased 10.7% year over year to $318.6 million with a margin of 48.4%, down 70 basis points. Net interest expenses fell 15.7% to $25.7 million.
Balance Sheet and Cash Flow
As of Sep 30, 2021, Cimpress had $193.2 million in cash and cash equivalents compared with $183 million at the end of the previous quarter. Also, the company’s total debt (net of issuance costs) was $1,729.7 million, down from $1,742.4 million, sequentially. In the fiscal first quarter, Cimpress refrained from buying back shares.
In the first three months of fiscal 2022, net cash provided by operating activities was $36.6 million compared with $105.7 million in the year-ago period.
Outlook
The company anticipates benefiting from end-market recovery in the quarters ahead. Also, it expects to significantly increase its organic growth investment in fiscal 2022.
For fiscal 2022, Cimpress is likely to incur capital expenditures, primarily for investment in product innovation and launches.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Monro, Inc. (MNRO - Free Report) , and SP Plus Corporation (SP - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BJ's Wholesale Club delivered an earnings surprise of 25.57%, on average, in the trailing four quarters.
Monro delivered an earnings surprise of 2.00%, on average, in the trailing four quarters.
SP Plus delivered an earnings surprise of 139.35%, on average, in the trailing four quarters.