We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cimpress' (CMPR) Q2 Earnings Beat Estimates, Revenues Miss
Read MoreHide Full Article
Cimpress N.V. (CMPR - Free Report) reported mixed second-quarter fiscal 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same.
The company’s adjusted earnings came in at $2.73 per share, surpassing the Zacks Consensus Estimate of $2.25. Moreover, the bottom grew 25.8% from the year-ago quarter figure of $2.17.
Total revenues in the fiscal second quarter were $820.3 million compared with $825.6 million a year ago. Also, the top line missed the consensus estimate of $841 million.
National Pen segment generated revenues of about $128 million, down 3.8% year over year. Vistaprint — the largest revenue generating segment of the company — reported aggregate revenues of $433.3 million, down from $443.9 million.
Upload and Print segment’s revenues increased to $214.1 million from $203.8 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $126.6 million from $116.3 million, whereas The Print Group generated $87.7 million, roughly flat year over year. Moreover, revenues from All Other Businesses increased to $49.8 million from $48.3 million.
Margin Details
In the quarter, Cimpress' cost of revenues was $394 million, down 4.3% on a year-over-year basis. It represented 48% of total revenues. Total selling, general & administrative expenses declined 10.2% to $225.2 million. It represented 27.5% of revenues in the fiscal second quarter.
Gross profit increased 2.9% year over year to $426.3 million, with margin expanding 180 basis points to 52%. Net interest expenses fell 6.5% to $15.7 million.
Balance Sheet and Cash Flow
As of Dec 31, 2019, Cimpress had $36.9 million in cash and cash equivalents compared with $48.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs), was $1,370.3 million, up from $1,048.4 million.
In the fiscal second quarter, Cimpress repurchased 2,279,736 shares for $305.3 million. Net cash provided by operating activities was $202.2 million, higher than $183.3 million in the year-ago quarter.
Outlook
For fiscal 2020, the company estimates National Pen’s sales growth to be in the range of flat-to-low single-digit (at constant currency), while the same for Vistaprint is projected to be in the range of flat-to-negative.
Zacks Rank & Stocks to Consider
Cimpress currently carries a Zacks Rank #3 (Hold).
Barnes Group delivered positive earnings surprise of 4.21%, on average, in the trailing four quarters.
Berry Global delivered positive earnings surprise of 0.70%, on average, in the trailing four quarters.
Cintas pulled off positive earnings surprise of 8.50%, on average, in the trailing four quarters.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Cimpress' (CMPR) Q2 Earnings Beat Estimates, Revenues Miss
Cimpress N.V. (CMPR - Free Report) reported mixed second-quarter fiscal 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same.
The company’s adjusted earnings came in at $2.73 per share, surpassing the Zacks Consensus Estimate of $2.25. Moreover, the bottom grew 25.8% from the year-ago quarter figure of $2.17.
Cimpress N.V Price, Consensus and EPS Surprise
Cimpress N.V price-consensus-eps-surprise-chart | Cimpress N.V Quote
Quarter Details
Total revenues in the fiscal second quarter were $820.3 million compared with $825.6 million a year ago. Also, the top line missed the consensus estimate of $841 million.
National Pen segment generated revenues of about $128 million, down 3.8% year over year. Vistaprint — the largest revenue generating segment of the company — reported aggregate revenues of $433.3 million, down from $443.9 million.
Upload and Print segment’s revenues increased to $214.1 million from $203.8 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $126.6 million from $116.3 million, whereas The Print Group generated $87.7 million, roughly flat year over year. Moreover, revenues from All Other Businesses increased to $49.8 million from $48.3 million.
Margin Details
In the quarter, Cimpress' cost of revenues was $394 million, down 4.3% on a year-over-year basis. It represented 48% of total revenues. Total selling, general & administrative expenses declined 10.2% to $225.2 million. It represented 27.5% of revenues in the fiscal second quarter.
Gross profit increased 2.9% year over year to $426.3 million, with margin expanding 180 basis points to 52%. Net interest expenses fell 6.5% to $15.7 million.
Balance Sheet and Cash Flow
As of Dec 31, 2019, Cimpress had $36.9 million in cash and cash equivalents compared with $48.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs), was $1,370.3 million, up from $1,048.4 million.
In the fiscal second quarter, Cimpress repurchased 2,279,736 shares for $305.3 million. Net cash provided by operating activities was $202.2 million, higher than $183.3 million in the year-ago quarter.
Outlook
For fiscal 2020, the company estimates National Pen’s sales growth to be in the range of flat-to-low single-digit (at constant currency), while the same for Vistaprint is projected to be in the range of flat-to-negative.
Zacks Rank & Stocks to Consider
Cimpress currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Barnes Group, Inc. (B - Free Report) , Berry Global Group, Inc. (BERY - Free Report) Cintas Corporation (CTAS - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barnes Group delivered positive earnings surprise of 4.21%, on average, in the trailing four quarters.
Berry Global delivered positive earnings surprise of 0.70%, on average, in the trailing four quarters.
Cintas pulled off positive earnings surprise of 8.50%, on average, in the trailing four quarters.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>