Cimpress (CMPR) Q1 Earnings, Revenues Lag Estimates, Down Y/Y
Cimpress plc CMPR reported disappointing first-quarter fiscal 2021 results, with both earnings and revenues missing the Zacks Consensus Estimate.
The company’s adjusted loss was 41 cents per share. The Zacks Consensus Estimate for earnings was pegged at 36 cents. Moreover, the bottom line deteriorated from the year-ago quarter’s adjusted earnings of 66 cents per share.
Top-Line Details
Total revenues in the fiscal first quarter were $586.5 million compared with $634 million in the year-ago quarter. Moreover, the top line missed the consensus estimate of $598 million.
Segmental Information
The National Pen segment generated revenues of $67.6 million, down from $70.2 million in the prior-year quarter. Vistaprint — the largest revenue generating segment of the company — reported aggregate revenues of $329.3 million, down from $343.2 million in the year-ago quarter.
The Upload and Print segment’s revenues fell to $166.3 million from $181.3 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $100.1 million from $109.3 million in the prior-year quarter. The Print Group generated revenues of $66.4 million, down from $72.3 million. Meanwhile, revenues from All Other Businesses increased to $43.5 million from $42.3 million in the year-ago quarter.
Cimpress plc Price, Consensus and EPS Surprise
Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote
Margin Details
In the quarter, Cimpress' cost of revenues was $298.8 million, down 8.3% on a year-over-year basis. It represented 50.9% of total revenues. Total selling, general & administrative expenses declined 12% to $180 million. It represented 30.7% of total revenues in the fiscal first quarter.
Gross profit declined 6.7% year over year to $287.7 million with margin at 49%, up 40 basis points. Net interest expenses surged 102% to $30.5 million.
Balance Sheet and Cash Flow
As of Sep 30, 2020, Cimpress had $40.2 million in cash and cash equivalents compared with $31.2 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs) was $1,354.2 million, up from $1,227.8 million in the year-ago quarter. In the fiscal first quarter, Cimpress refrained from buying back any shares.
For first three months of fiscal 2021, net cash provided by operating activities was $105.7 million compared with $62.9 million in the year-ago comparable period.
Outlook
Due to uncertainties regarding the impact of the coronavirus outbreak on financial and operating results, the company has not provided earnings and revenue projections for the second quarter and fiscal 2021.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks are Kaman Corporation KAMN, Dover Corporation DOV and IDEX Corporation IEX. 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.
Kaman delivered a positive earnings surprise of 30.42%, on average, in the trailing four quarters.
Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters.
IDEX delivered a positive earnings surprise of 6.80%, on average, in the trailing four quarters.
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