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Why Is Cimpress (CMPR) Down 2.9% 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 lost about 2.9% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cimpress due for a breakout? 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 drivers.

Cimpress Q3 Earnings Miss Estimates, Revenues Up Y/Y

Cimpress reported third-quarter fiscal 2019 results with GAAP earnings of $6.5 million or 21 cents per share against a loss of $2.3 million or 7 cents per share in the year-ago quarter. Notably, the Zacks Consensus Estimate of earnings was pegged at 42 cents.

Quarter Details

Total revenues for the fiscal third quarter were $661.8 million compared with $636.1 million a year ago. The top line missed the consensus estimate of $665.7 million.

The National Pen segment generated revenues of $79.7 million, down 2.2% year over year. Furthermore, Vistaprint— the largest revenue generating segment of the company — witnessed a decline in revenues. Aggregate quarterly revenues from Vistaprint came in at $349.9 million, down from $357.6 million.

Upload and Print segment’s revenues increased to $188.1 million from $183.8 million due to improved operating metrics. Moreover, revenues from All Other Businesses increased to $50.1 million from $18.9 million.

Gross margin contracted to 48.2% from 49.8% in the year-ago quarter.

Balance Sheet and Cash Flow

As of Mar 31, 2019, Cimpress had $44.3 million in cash and cash equivalents compared with $49.9 million in the prior-year quarter. At the end of the quarter, total debt was $1,075.1 million, up from $812.6 million.

In the fiscal third quarter, Cimpress repurchased 149,382 shares for $12.1 million. Net cash provided by operating activities came in at $17 million against $32.1 million used in the year-ago quarter.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Cimpress has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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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