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Cimpress (CMPR) Q3 Earnings Miss Estimates, Revenues Beat

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Cimpress plc CMPR reported mixed third-quarter fiscal 2021 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.

The company reported an adjusted loss of $1.50 per share, wider than the Zacks Consensus Estimate of a loss of 53 cents by 183%. Moreover, the bottom line declined from the year-ago quarter’s earnings of 61 cents per share.

Top-Line Details

Total revenues in the fiscal third quarter were $578.9 million compared with $598 million in the year-ago quarter. However, the top line surpassed the consensus estimate of $527 million by 15.8%.

Segmental Information

The National Pen segment generated revenues of $62.2 million, down from $68.4 million in the prior-year quarter. Vistaprint — the largest revenue generating segment of the company — reported aggregate revenues of $327.5 million, up from $316.3 million in the year-ago quarter.

The Upload and Print segment’s revenues fell to $153.7 million from $177.8 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $94 million from $109.5 million in the prior-year quarter. The Print Group generated revenues of $59.9 million, down from $68.5 million. Meanwhile, revenues from All Other Businesses increased to $44.1 million from $39.2 million.

Margin Details

In the quarter, Cimpress' cost of revenues was $302 million, down 2.5% on a year-over-year basis. It represented 52.2% of total revenues. Total selling, general & administrative expenses were $216.9 million, up 11.9% on a year-over-year basis. It represented 37.5% of total revenues in the fiscal third quarter.

Gross profit declined 4% year over year to $276.8 million with margin at 47.8%, down 40 basis points. Net interest expenses surged 67.6% to $29 million.

Balance Sheet and Cash Flow

As of Mar 31, 2021, Cimpress had $36.4 million in cash and cash equivalents compared with $228.3 million at the end of year-ago quarter. Also, the company’s total debt (net of issuance costs) was $1,341.2 million, down from $1,671.6 million. In the fiscal third quarter, Cimpress refrained from buying back shares.

In first nine months of fiscal 2021, net cash provided by operating activities was $218.9 million compared with $284.1 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 fourth quarter and fiscal 2021.

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

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks are Alcoa Corporation AA, Lakeland Industries, Inc. LAKE and Energy Recovery, Inc. ERII. While Alcoa and Lakeland Industries currently sport a Zacks Rank #1 (Strong Buy), Energy Recovery carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alcoa delivered a positive earnings surprise of 56.78%, on average, in the trailing four quarters.

Lakeland Industries delivered a positive earnings surprise of 230.73%, on average, in the trailing four quarters.

Energy Recovery delivered a positive earnings surprise of 232.08%, on average, in the trailing four quarters.

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