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Bear of the Day: Cimpress plc (CMPR)

·2 min read

Cimpress plc (CMPR) fell well short of our earnings estimates near the end of January. The miss marked the third-straight rough quarter on the EPS front for the owner of Vistaprint and other companies that sell customized offerings from clothing to signs to businesses and entrepreneurs.

Rough Times

Cimpress owns BuildASign, Exaprint, Pixartprinting, Vistaprint, and other companies that cater to various business customization needs. The Ireland-headquartered company customizes products on a mass scale, from business cards and stickers to yard signs and clothing. The pandemic has been hard on CMPR, as its customers cut back on spending.

The firm’s revenue has looked better over the last two quarters, after it fell 36% during the height of the pandemic. Still, Cimpress revenue has fallen in the trailing five periods. Most recently, its second quarter fiscal 2021 revenue fell over 4%, while its adjusted earnings tumbled and missed our bottom-line estimate by roughly 57%.

What Else

CMPR shares have trended in the wrong direction well before the coronavirus, down around 37% in the past three years, as the nearby chart shows. The stock has bounced back from its March 2020 lows and it has started to recover from its post-Q2 earnings release selloff.

That said, analysts have lowered their earnings outlooks since its report as its outlook remains subdued. Luckily, the company is projected to start to bounce back in a big way in the fourth quarter of FY21, albeit against an easy-to-compare period.

Bottom Line

Cimpress is part of our Consumer Services – Miscellaneous space that rests in the bottom 6% of our over 250 Zacks industries. And CMPR’s downward earnings revisions helped it land a Zacks Rank #5 (Strong Sell) at the moment. That said, the stock could be ready to bounce back if the economy starts to kick into a higher gear by the summer.

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