Cimpress (CMPR) Q3 Earnings Miss Estimates, Revenues Beat
Cimpress plc CMPR reported mixed third-quarter fiscal 2022 results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.
The company reported an adjusted loss of $2.75 per share, wider than the Zacks Consensus Estimate of a loss of 83 cents. The company had incurred a loss of $1.50 per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal third quarter were $657.4 million, reflecting an increase of 14.6% from $573.4 million in the year-ago quarter. The top line surpassed the consensus estimate of $633 million by 3.9%.
Segmental Information
The National Pen segment generated revenues of $72.2 million, up from $62.2 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $349.2 million, up from $322 million in the year-ago quarter.
The Upload and Print segment’s revenues increased to $195.4 million from $153.9 million in the year-ago quarter. The segment consists of two subgroups — PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $120 million from $94 million. The Print Group generated revenues of $75.4 million, up from $59.9 million. Revenues from All Other Businesses increased to $48.5 million from $44.1 million.
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 $347.5 million, up 17.2% on a year-over-year basis. It represented 52.9% of total revenues. Total selling, general & administrative expenses were $245.5 million, up 13.1%. It represented 37.3% of total revenues in the quarter.
Gross profit increased 11.9% year over year to $310 million with a margin of 47.1%, down 120 basis points. Net interest expenses fell 16.6% to $24.2 million.
Balance Sheet and Cash Flow
As of Mar 31, 2022, Cimpress had $161.5 million in cash and cash equivalents compared with $231.2 million at the end of the previous quarter. Also, the company’s total debt (net of issuance costs) was $1,710.4 million, down from $1,718.3 million sequentially. In the fiscal third quarter, Cimpress refrained from buying back shares.
In the first nine months of fiscal 2022, net cash provided by operating activities was $131.7 million compared with $218.9 million a year ago.
Outlook
The company is likely to benefit from end-market recovery in the quarters ahead. However, lingering effects of the pandemic in some end markets and supply-chain issues might affect its performance. It remains focused on its organic growth investment in fiscal 2022.
For fiscal 2022, Cimpress is likely to incur capital expenditures, primarily for investment in product innovation and launches.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are discussed below.
Clarus Corporation CLAR presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 12.25%, on average.
In the past 30 days, Clarus’ earnings estimates have been stable for 2022. CLAR’s shares have lost 8.9% in the past three months.
Delta Apparel, Inc. DLA presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 21.3%, on average.
Delta Apparel’s earnings estimates have increased 0.9% for fiscal 2022 (ending September 2022) in the past 30 days. DLA’s shares have lost 2.4% in the past three months.
Carter's, Inc. CRI presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 198.8%, on average.
Carter's earnings estimates have been stable for 2022 in the past 30 days. CRI’s shares have lost 7.8% in the past three months.
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