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Cimpress (CMPR) Earnings & Revenues Miss Estimates in Q1

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Cimpress N.V. (CMPR - Free Report) reported disappointing first-quarter fiscal 2019 results with GAAP loss of $14.6 million or loss of 47 cents per share against GAAP earnings of $23.4 million or earnings of 72 cents per share in the year-ago quarter. Despite higher revenues, a significant rise in operating expenses primarily led to the disappointing results. Notably, the Zacks Consensus Estimate of loss was pegged at 13 cents.

Quarter Details

Total revenues in the fiscal first quarter were $589 million compared with $563.3 million in the year-ago quarter. It missed the Zacks Consensus Estimate of $611.2 million.

Cimpress N.V Price, Consensus and EPS Surprise

Cimpress N.V Price, Consensus and EPS Surprise | Cimpress N.V Quote

The National Pen segment recorded revenues of $66 million, recording 10% growth year over year. Furthermore, the Vistaprint segment — the largest revenue generating segment of the company — showed rise in revenues. Aggregate quarterly revenues from Vistaprint came in at $337 million, up from $319 million in the year-ago quarter. On the other hand, Upload and Print segment’s revenues increased to $172 million from $160 million in the year-earlier quarter due to improved operating metrics. However, revenues from All Other Businesses decreased 33% year over year to $19million from $28million in the prior-year quarter.

Gross margin in the reported quarter contracted to 48.6% from 49.6%.

Balance Sheet and Cash Flow

As of Sep 30, 2018, Cimpress had $48.1 million in cash and cash equivalents compared with $42.8 million in the prior-year quarter. At the end of the quarter, total debt was $863.6 million compared with $820.8 million a year ago.

In the fiscal first quarter, Cimpress did not repurchase any shares. Net cash provided by operating activities came in at $22.2 million compared with $16.4 million in the year-ago quarter.

Moving Forward

For fiscal 2019, the company expects a reduction in operating expenses on account of its cost savings and tax planning initiatives.

Zacks Rank & Stocks to Consider

Cimpress currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the space are Enersys (ENS - Free Report) , Eaton Corporation, PLC (ETN - Free Report) and Graco Inc. (GGG - Free Report) . While Enersys sports a Zacks Rank #1 (Strong Buy), Eaton and Graco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enersys surpassed estimates thrice in the trailing four quarters, the average beat being 2.86%.

Eaton exceeded estimates thrice in the trailing four quarters, the average beat being 2.90%.

Graco surpassed estimates twice in the trailing four quarters, the average beat being 4.05%.

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