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Cimpress (CMPR) Shares Decline 4.7% Since Q2 Earnings Release
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Cimpress plc (CMPR - Free Report) reported lackluster second-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate by 134.6% and sales missed the same by 6.2%. Shares of the company have declined 4.7% since the earnings release on Jan 25.
CMPR incurred an adjusted loss of 46 cents per share. The Zacks Consensus Estimate was pegged at earnings of $1.32. This compares with our estimate of $1.23. Cimpress reported an EPS of $2.08 per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal second quarter were $845.2 million, reflecting a decrease of 0.5% from $849.7 million in the year-ago quarter. The organic constant-currency revenue growth was 5%, driven by growth across all businesses. The top line missed the consensus estimate of $901 million. This compares with our estimate of $892.7 million.
Segmental Information
The National Pen segment generated revenues of $120.6 million, down from $124.7 million in the prior-year quarter. This compares with the Zacks Consensus Estimate of $145 million. Our estimate for the quarter was $142.2 million. Vistaprint — the largest revenue-generating segment — reported aggregate revenues of $437.7 million, down from $448.1 million in the year-ago quarter. This compares with the Zacks Consensus Estimate of $479 million. Our estimate for the quarter was $467.1 million.
The Upload and Print segment’s revenues increased to $237.9 million from $227.8 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $148.6 million from $137.7 million. The Print Group generated revenues of $89.3 million, down from $90,1 million. Revenues from All Other Businesses increased to $60 million from $57.7 million. This compares with the Zacks Consensus Estimate of $62 million. Our estimate for the quarter was $64.1 million.
In the quarter, Cimpress' cost of revenues was $455.4 million, up 7.4% on a year-over-year basis. The metric represented 53.9% of total revenues. Total selling, general & administrative expenses were $254.9 million, marginally down from the year-ago quarter. The same represented 30.2% of total revenues in the quarter.
Gross profit increased 8.5% year over year to $390 million. The margin was 46.1%, down 400 basis points due to inflationary pressure on input costs and product mix shifts in Vista. Net interest expenses rose 12.6% to $28.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2022, Cimpress had $111.3 million of cash and cash equivalents compared with $277.1 million at the end of the fourth quarter of fiscal 2022. Also, CMPR’s total debt (net of issuance costs) was $1,689.3 million. In the fiscal second quarter, Cimpress refrained from buying back shares.
In the first six months of fiscal 2023, net cash provided by operating activities was $55.9 million compared with $179.9 million cash provided a year ago.
Zacks Rank & Stocks to Consider
CMPR currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:
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Cimpress (CMPR) Shares Decline 4.7% Since Q2 Earnings Release
Cimpress plc (CMPR - Free Report) reported lackluster second-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate by 134.6% and sales missed the same by 6.2%. Shares of the company have declined 4.7% since the earnings release on Jan 25.
CMPR incurred an adjusted loss of 46 cents per share. The Zacks Consensus Estimate was pegged at earnings of $1.32. This compares with our estimate of $1.23. Cimpress reported an EPS of $2.08 per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal second quarter were $845.2 million, reflecting a decrease of 0.5% from $849.7 million in the year-ago quarter. The organic constant-currency revenue growth was 5%, driven by growth across all businesses. The top line missed the consensus estimate of $901 million. This compares with our estimate of $892.7 million.
Segmental Information
The National Pen segment generated revenues of $120.6 million, down from $124.7 million in the prior-year quarter. This compares with the Zacks Consensus Estimate of $145 million. Our estimate for the quarter was $142.2 million. Vistaprint — the largest revenue-generating segment — reported aggregate revenues of $437.7 million, down from $448.1 million in the year-ago quarter. This compares with the Zacks Consensus Estimate of $479 million. Our estimate for the quarter was $467.1 million.
The Upload and Print segment’s revenues increased to $237.9 million from $227.8 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $148.6 million from $137.7 million. The Print Group generated revenues of $89.3 million, down from $90,1 million. Revenues from All Other Businesses increased to $60 million from $57.7 million. This compares with the Zacks Consensus Estimate of $62 million. Our estimate for the quarter was $64.1 million.
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 $455.4 million, up 7.4% on a year-over-year basis. The metric represented 53.9% of total revenues. Total selling, general & administrative expenses were $254.9 million, marginally down from the year-ago quarter. The same represented 30.2% of total revenues in the quarter.
Gross profit increased 8.5% year over year to $390 million. The margin was 46.1%, down 400 basis points due to inflationary pressure on input costs and product mix shifts in Vista. Net interest expenses rose 12.6% to $28.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2022, Cimpress had $111.3 million of cash and cash equivalents compared with $277.1 million at the end of the fourth quarter of fiscal 2022. Also, CMPR’s total debt (net of issuance costs) was $1,689.3 million. In the fiscal second quarter, Cimpress refrained from buying back shares.
In the first six months of fiscal 2023, net cash provided by operating activities was $55.9 million compared with $179.9 million cash provided a year ago.
Zacks Rank & Stocks to Consider
CMPR currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank of 2 (Buy). ALLE’s earnings surprise in the last four quarters was 8.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
In the past 60 days, Allegion’s earnings estimates have remained steady for 2022. The stock has gained 8.6% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 12.5%, on average.
In the past 60 days, Valmont’s earnings estimates have increased by a penny. The stock has rallied 22.2% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 0.1% for 2022. The stock has rallied 13.6% in the past six months.