It has been about a month since the last earnings report for Cimpress (CMPR Quick QuoteCMPR - Free Report) . Shares have lost about 17.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cimpress due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Cimpress Q3 Earnings Miss Estimates, Revenues Beat

Cimpress reported mixed third-quarter fiscal 2022 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.

The company reported an adjusted loss of $2.75 per share, wider than the Zacks Consensus Estimate of a loss of 83 cents. The company had incurred a loss of $1.50 per share in the year-ago quarter.

Top-Line Details

Total revenues in the fiscal third quarter were $657.4 million, reflecting an increase of 14.6% from $573.4 million in the year-ago quarter. The top line surpassed the consensus estimate of $633 million by 3.9%.

Segmental Information

The National Pen segment generated revenues of $72.2 million, up from $62.2 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $349.2 million, up from $322 million in the year-ago quarter.

The Upload and Print segment’s revenues increased to $195.4 million from $153.9 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $120 million from $94 million. The Print Group generated revenues of $75.4 million, up from $59.9 million. Revenues from All Other Businesses increased to $48.5 million from $44.1 million.

Margin Details

In the quarter, Cimpress' cost of revenues was $347.5 million, up 17.2% on a year-over-year basis. It represented 52.9% of total revenues. Total selling, general & administrative expenses were $245.5 million, up 13.1%. It represented 37.3% of total revenues in the quarter.

Gross profit increased 11.9% year over year to $310 million with a margin of 47.1%, down 120 basis points. Net interest expenses fell 16.6% to $24.2 million.

Balance Sheet and Cash Flow

As of Mar 31, 2022, Cimpress had $161.5 million in cash and cash equivalents compared with $231.2 million at the end of the previous quarter.
Also, the company’s total debt (net of issuance costs) was $1,710.4 million, down from $1,718.3 million sequentially. In the fiscal third quarter, Cimpress refrained from buying back shares.

In the first nine months of fiscal 2022, net cash provided by operating activities was $131.7 million compared with $218.9 million a year ago.

Outlook

The company is likely to benefit from end-market recovery in the quarters ahead. However, lingering effects of the pandemic in some end markets and supply chain issues might affect its performance. It remains focused on 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -474.42% due to these changes.

VGM Scores

At this time, Cimpress has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cimpress has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.