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Why Is Cimpress (CMPR) Up 7.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Cimpress (CMPR - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cimpress due for a pullback? 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 reported second-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.14 per share, which surpassed the Zacks Consensus Estimate of $1.24. Cimpress incurred a loss of 46 cents per share in the year-ago quarter. Following this better-than-expected performance, shares of the company have gained 1.9% since the earnings release on Jan 31.
Top-Line Details
Total revenues in the fiscal second quarter were $921.4 million, reflecting an increase of 9% from $845.2 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line beat the Zack Consensus Estimate of $901 million.
Segmental Information
The National Pen segment generated revenues of $130.6 million, up from $120.6 million in the year-ago quarter. Our estimate for the quarter was $108.5 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $485.1 million compared with $437.7 million in the year-ago quarter. Our estimate for the quarter was $481.6 million.
The Upload and Print segment’s revenues increased to $258.2 million from $237.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal second quarter, PrintBrothers’ revenues increased to $165.1 million from $148.6 million reported in the year-ago period. Our estimate for the quarter was $175.7 million.
In the fiscal second quarter, the Print Group generated revenues of $93.3 million, up from $89.3 million reported in the year-ago quarter. Our estimate for the quarter was $102.9 million. Revenues from All Other Businesses were $60.3 million, in line with the year-ago quarter. Our estimate for the quarter was $62.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $463.4 million, up 1.8% on a year-over-year basis. Marketing and selling expenses totaled $211.8 million, up 3.3% year over year. Total general & administrative expenses were $48.8 million, down from $49.8 million reported in the year-ago fiscal quarter.
Gross profit increased 17.4% year over year to $458 million. The margin was 49.7%, up 360 basis points. Net interest expenses rose 7% to $30.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Cimpress had $274.3 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,626.3 million in the first six months of the year.
In the same time, net cash provided by operating activities was $217.2 million compared with $55.8 million in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 7% compared with at least 8% predicted earlier and organic constant-currency revenue growth to be at least 5%.
CMPR predicts operating income to be at least $230.5 million for the fiscal year and adjusted EBITDA to be at least $455.0 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -63.79% due to these changes.
VGM Scores
Currently, Cimpress has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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. Notably, Cimpress has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Cimpress (CMPR) Up 7.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Cimpress (CMPR - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cimpress due for a pullback? 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 Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Cimpress reported second-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.14 per share, which surpassed the Zacks Consensus Estimate of $1.24. Cimpress incurred a loss of 46 cents per share in the year-ago quarter. Following this better-than-expected performance, shares of the company have gained 1.9% since the earnings release on Jan 31.
Top-Line Details
Total revenues in the fiscal second quarter were $921.4 million, reflecting an increase of 9% from $845.2 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line beat the Zack Consensus Estimate of $901 million.
Segmental Information
The National Pen segment generated revenues of $130.6 million, up from $120.6 million in the year-ago quarter. Our estimate for the quarter was $108.5 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $485.1 million compared with $437.7 million in the year-ago quarter. Our estimate for the quarter was $481.6 million.
The Upload and Print segment’s revenues increased to $258.2 million from $237.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal second quarter, PrintBrothers’ revenues increased to $165.1 million from $148.6 million reported in the year-ago period. Our estimate for the quarter was $175.7 million.
In the fiscal second quarter, the Print Group generated revenues of $93.3 million, up from $89.3 million reported in the year-ago quarter. Our estimate for the quarter was $102.9 million. Revenues from All Other Businesses were $60.3 million, in line with the year-ago quarter. Our estimate for the quarter was $62.5 million.
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $463.4 million, up 1.8% on a year-over-year basis. Marketing and selling expenses totaled $211.8 million, up 3.3% year over year. Total general & administrative expenses were $48.8 million, down from $49.8 million reported in the year-ago fiscal quarter.
Gross profit increased 17.4% year over year to $458 million. The margin was 49.7%, up 360 basis points. Net interest expenses rose 7% to $30.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Cimpress had $274.3 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,626.3 million in the first six months of the year.
In the same time, net cash provided by operating activities was $217.2 million compared with $55.8 million in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 7% compared with at least 8% predicted earlier and organic constant-currency revenue growth to be at least 5%.
CMPR predicts operating income to be at least $230.5 million for the fiscal year and adjusted EBITDA to be at least $455.0 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -63.79% due to these changes.
VGM Scores
Currently, Cimpress has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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. Notably, Cimpress has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.