Cimpress (CMPR) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Cimpress plc CMPR reported first-quarter fiscal 2024 (ended Sep 30, 2023) adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 34 cents per share. Cimpress incurred a loss of 97 cents per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal first quarter were $757.3 million, reflecting an increase of 7.7% from $703.4 million in the year-ago quarter. The organic constant-currency revenue growth was also 4%, driven by growth across most of its businesses. The top line missed the Zack Consensus Estimate of $771 million.
Segmental Information
The National Pen segment generated revenues of $87.3 million, up from $81.7 million in the prior-year quarter. Our estimate for the quarter was $91.2 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $396.6 million, in line with the year-ago quarter. Our estimate for the quarter was $404.3 million.
The Upload and Print segment’s revenues increased to $232.7 million from $209.5 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal first quarter, PrintBrothers’ revenues increased to $152.2 million from $132.7 million reported in the year-ago period. Our estimate for the quarter was $145.0 million.
In the fiscal first quarter, the Print Group generated revenues of $80.5 million, up from $76.8 million reported in the year-ago quarter. Our estimate for the quarter was $86.9 million. Revenues from All Other Businesses increased to $51.8 million, in line with the year-ago quarter. Our estimate for the quarter was $53.5 million.
Cimpress plc Price, Consensus and EPS Surprise
Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $398.8 million, up 5.6% on a year-over-year basis. Marketing and selling expenses totaled $192.2 million, down 4.4% year over year. Total general & administrative expenses were $48.3 million, down from $54.1 million reported in the year-ago fiscal quarter.
Gross profit increased 10.1% year over year to $359 million. The margin was 47.3%, up 100 basis points. Net interest expenses rose 17.7% to $29.2 million.
Balance Sheet and Cash Flow
As of Sep 30, 2023, Cimpress had $125.2 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,473 million in the first three months of the year.
In the same time period, net cash provided by operating activities was $42.3 million against $25.3 million cash spent in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 8% and organic constant-currency revenue growth to be at least 6%.
CMPR predicts operating income to be at least $206.2 million for the fiscal year and adjusted EBITDA to be at least $425 million. The company also expects the conversion of adjusted EBITDA to adjusted free cash flow to be approximately 40% for fiscal 2024.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Applied Industrial Technologies, Inc. AIT presently carries a Zacks Rank #2 (Buy) and a trailing four-quarter earnings surprise of 15%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 1.3% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 27.9% in the past year.
Axon Enterprise, Inc. AXON currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 60.2%, on average.
In the past 60 days, estimates for Axon’s earnings have remained steady for 2023. The stock has soared 46.1% in the past year.
Caterpillar Inc. CAT presently carries a Zacks Rank of 2. CAT’s earnings surprise in the last four quarters was 18.5%, on average.
In the past 60 days, estimates for Caterpillar’s 2023 earnings have increased 1.5%. The stock has gained 14.3% in the past year.
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