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Cimpress (CMPR) Up 6.4% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Cimpress (CMPR - Free Report) . Shares have added about 6.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Cimpress Earnings & Revenues Miss Estimates in Q1

Cimpress 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.

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 $19 million from $28 million 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 14.43% due to these changes.

VGM Scores

Currently, Cimpress has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Cimpress has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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