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Cimpress (CMPR) Q2 Earnings Lag Estimates, Revenues Beat

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Zacks Equity Research
·3 min read
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Cimpress plc CMPR reported mixed second-quarter fiscal 2021 results, wherein earnings missed the Zacks Consensus Estimate, while revenues beat the same.

The company’s adjusted earnings were $1.22 per share, missing the Zacks Consensus Estimate of $2.83 by 56.9%. Moreover, the bottom line declined from the year-ago quarter’s $2.73 per share.

Top-Line Details

Total revenues in the fiscal second quarter were $786.1 million compared with $820.3 million in the year-ago quarter. However, the top line surpassed the consensus estimate of $767 million by 2.5%.

Segmental Information

The National Pen segment generated revenues of $114.7 million, down from $128 million in the prior-year quarter. Vistaprint — the largest revenue generating segment of the company — reported aggregate revenues of $436.3 million, up from $433.3 million in the year-ago quarter.

The Upload and Print segment’s revenues fell to $197.5 million from $214.1 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $121.8 million from $126.6 million in the prior-year quarter. The Print Group generated revenues of $76.2 million, down from $87.7 million. Meanwhile, revenues from All Other Businesses increased to $55.4 million from $49.8 million.

Cimpress plc Price, Consensus and EPS Surprise

Cimpress plc Price, Consensus and EPS Surprise
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 $386 million, down 2% on a year-over-year basis. It represented 49.1% of total revenues. Total selling, general & administrative expenses were $225.3 million, relatively flat year over year. It represented 28.7% of total revenues in the fiscal second quarter.

Gross profit declined 6.1% year over year to $400.2 million with margin at 50.9%, down 110 basis points. Net interest expenses surged 91.7% to $30.1 million.

Balance Sheet and Cash Flow

As of Dec 31, 2020, Cimpress had $36.9 million in cash and cash equivalents, relatively flat year over year. Also, the company’s total debt (net of issuance costs) was $1,271.1 million, down from $1,370.3 million. In the fiscal second quarter, Cimpress refrained from buying back any shares.

In first six months of fiscal 2021, net cash provided by operating activities was $256.2 million compared with $265.1 million in the year-ago 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 third quarter and fiscal 2021.

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks are AGCO Corporation AGCO, AptarGroup, Inc. ATR and Dover Corporation DOV. While AGCO currently sports a Zacks Rank #1 (Strong Buy), AptarGroup and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO delivered a positive earnings surprise of 434.48%, on average, in the trailing four quarters.

AptarGroup delivered a positive earnings surprise of 10.91%, on average, in the trailing four quarters.

Dover delivered a positive earnings surprise of 18.1%, on average, in the trailing four quarters.

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