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Cimpress' Q1 Earnings Miss Estimates, Revenues Increase Y/Y

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Cimpress plc (CMPR - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted loss of 50 cents per share in contrast to the Zacks Consensus Estimate of earnings of 30 cents per share. The company had reported adjusted earnings of 17 cents per share in the year-ago quarter.

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CMPR’s Top-Line Details

Total revenues were $805 million, reflecting an increase of 6% from $757.3 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 $801 million.

Cimpress plc Price, Consensus and EPS Surprise

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 $93.4 million, up from $86.8 million in the year-ago quarter. Our estimate was $93 million.

Vista — the largest revenue-generating segment — reported aggregate revenues of $429.5 million compared with $396.9 million in the year-ago quarter. Our estimate was $425.7 million.

The Upload and Print segment’s revenues increased to $244.5 million from $231.9 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group.

PrintBrothers’ revenues increased to $160.4 million from $152.6 million in the year-ago period. Our estimate was $165 million. The Print Group generated revenues of $84.1 million, up from $79.4 million reported in the year-ago quarter. Our estimate was $82.6 million.

Revenues from All Other Businesses were $57.1 million compared with $51.4 million reported a year ago. Our estimate was $52.7 million.

CMPR’s Margin Details

Cimpress' cost of revenues was $422.7 million, up 6% on a year-over-year basis. Marketing and selling expenses totaled $203.8 million, up 6% year over year. General & administrative expenses were $51.9 million, up from $48.3 million reported in the year-ago fiscal quarter.

Gross profit increased 6.4% year over year to $382 million. The margin was 47%, relatively stable year over year. Net interest expenses rose 7.5% year over year to $31.4 million.  Adjusted EBITDA fell $1 million year over year to $87.8 million.

Balance Sheet and Cash Flow

As of Sept. 30, 2024, Cimpress had $153 million of cash and cash equivalents compared with $203.8 million at the end of the fourth quarter of fiscal 2024.

Exiting the fiscal first quarter, CMPR’s long-term debt was $1.59 billion, marginally down from the fourth-quarter fiscal 2024-end figure.

During the fiscal first quarter, net cash provided by operating activities was $4.4 million compared with $42.3 million in the year-ago period. It repurchased shares worth $10.6 million during the quarter.

CMPR’s Outlook

For fiscal 2025, Cimpress expects to reduce net leverage. The company hopes to exit fiscal 2025 with net leverage at or below 2.75x trailing-twelve-month EBITDA.

Zacks Rank & Stocks to Consider

CMPR currently carries a Zacks Rank #4 (Sell). Some better-ranked companies are discussed below:

Graham Corporation (GHM - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 133.2%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has remained stable.

Ingersoll-Rand plc (IR - Free Report) presently carries a Zacks Rank of 2. IR delivered a trailing four-quarter average earnings surprise of 11%.

In the past 60 days, the consensus estimate for Ingersoll-Rand’s 2024 earnings has inched up 0.6%.

Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.3%.

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