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Cimpress (CMPR) Q3 Earnings Beat Estimates, Revenues Miss

Zacks Equity Research

Cimpress plc CMPR reported mixed third-quarter fiscal 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same.

The company’s adjusted earnings were 61 cents per share, surpassing the Zacks Consensus Estimate of 53 cents. Moreover, the bottom line compared favorably with the year-ago quarter figure of 21 cents.

Top-Line Details

Total revenues in the fiscal third quarter were $598 million compared with $661.8 million a year ago. Also, the top line missed the consensus estimate of $673 million.

Cimpress plc Price, Consensus and EPS Surprise

 

Cimpress plc Price, Consensus and EPS Surprise

Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote

Segmental Information

TheNational Pen segment generated revenues of $68.4 million, down from $79.7 million year over year. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $316.3 million, down from $358.7 million a year ago.

TheUpload and Print segment’s revenues decreased to $177.8 million from $188.1 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues moved up to $109.5 million from $109.3 million a year ago, whereas The Print Group generated $68.5 million, down from $79 million reported in the year-ago quarter. Moreover, revenues from All Other Businesses increased to $39.2 million from $38 million a year ago.

Margin Details

In the quarter, Cimpress' cost of revenues was $309.6 million, down 9.7% on a year-over-year basis. It represented 51.8% of total revenues. Total selling, general & administrative expenses declined 6.8% year over year to $193.9 million. It represented 32.4% of revenues in the fiscal third quarter.

Gross profit decreased 9.6% year over year to $288.4 million, with margin at 48.2%, flat year over year. Net interest expenses grew 15.3% year over year to $17.3 million.

Balance Sheet and Cash Flow

As of Mar 31, 2020, Cimpress had $228.3 million in cash and cash equivalents compared with $44.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs) was $1,671.6 million, up from $1,075.1 million in the year-ago quarter.

In the fiscal third quarter, Cimpress repurchased 758,653 shares for $89.5 million. Net cash provided by operating activities was $19 million, higher than $17 million in the year-ago quarter.

Order Trends

The company mentioned that bookings at the Vistaprint segment recorded a decline of 51% on a year-over-year basis, whereas that for the Upload and Print segment fell about 57%in April. For the National Pen segment, bookings decreased roughly 65% in the month, and a decline of 6% was recorded for its All Other Businesses segment.

Outlook

The company has not provided earnings and revenue projections for the fourth quarter and fiscal 2020. However, it did mention that owing to the uncertain near-term market environment due to the coronavirus outbreak, it anticipates an adverse impact on its financial results, going forward, despite its current efforts to reduce costs.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks are Intellicheck, Inc. IDN, iRobot Corporation IRBT and Berry Global Group, Inc. BERY. All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.

iRobot delivered a positive earnings surprise of 233.53%, on average, in the trailing four quarters.

Berry Global delivered a positive earnings surprise of 6.63%, on average, in the trailing four quarters.

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