Vistaprint N.V (VPRT), an online provider of professional marketing products and services, reported a net income of $5.9 million or 17 cents per share in third quarter fiscal 2013 (ending Mar 31, 2013) compared to $0.3 million or 1 cent in the year-earlier quarter. The increase in earnings was driven by low advertising and operating expenses.
Excluding one-time items, adjusted earnings were $16.9 million or 48 cents per share compared to $11.2 million or 29 cents in the year-ago quarter. The quarterly adjusted earnings were well above the Zacks Consensus Estimate of 9 cents.
Total revenue increased 12% year over year to $287.7 million in third quarter 2013. The reported earnings missed the Zacks Consensus Estimate of $289 million.
Geographically, revenues was up 15% year over year in North America, followed up with Europe (up 8%) and Most of world (up 6%) year over year in the reported quarter.
In the reported quarter, gross margin was flat year over year at 65.5%. Operating income increased to $9.7 million from $7.8 million in the prior-year quarter.
Balance Sheet & Cash Flow
The company exited the quarter with $51.3 million in cash and cash equivalents. Debt stood at $238.5 million, with $237.3 million available under its credit facility. Vistaprint purchased 410,400 shares for $16.2 million in the quarter under its existing share repurchase program.
Subsequent to the end of the quarter, the company purchased an additional 493,700 shares for $18.7 million,
The company generated $8.1 million in cash from operations with capital expenditure of $11.2 million
For the fourth quarter of fiscal 2013, the company expects revenues in the range of of $263 million to $278 million. Fiscal 2013 revenues are expected in the range of $1,150 million – $1,165 million with GAAP earnings in the range of 60 cents–80 cents per share. Adjusted earnings for full fiscal are expected in the range of $1.94–$2.14 per share with capital expenditures of $85 million to $95 million.
Vistaprint remains focused on leveraging its investment and expect meaningful earnings growth and margin expansion in fiscal year 2014.
Vistaprint currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering in the industry are Automatic Data Processing, Inc (ADP), Barrett Business Services Inc (BBSI) and Genpact Ltd (G), each carrying a Zacks Rank #2 (Buy).
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