U.S. Markets closed
  • Crude Oil

    70.98
    +0.69 (+0.98%)
     
  • Gold

    1,763.70
    -0.10 (-0.01%)
     
  • Silver

    22.22
    +0.05 (+0.23%)
     
  • EUR/USD

    1.1734
    +0.0007 (+0.0587%)
     
  • 10-Yr Bond

    1.3090
    -0.0610 (-4.45%)
     
  • Vix

    25.71
    +4.90 (+23.55%)
     
  • GBP/USD

    1.3668
    +0.0008 (+0.0615%)
     
  • USD/JPY

    109.5690
    +0.1490 (+0.1362%)
     
  • BTC-USD

    44,590.88
    -3,435.44 (-7.15%)
     
  • CMC Crypto 200

    1,068.18
    -66.20 (-5.84%)
     
  • FTSE 100

    6,903.91
    -59.73 (-0.86%)
     
  • Nikkei 225

    29,898.57
    -601.48 (-1.97%)
     

Cimpress (CMPR) Q4 Earnings Miss Estimates, Decline Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Cimpress plc CMPR reported fourth-quarter fiscal 2020 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.

The company’s adjusted loss were $1.62 per share, wider than the Zacks Consensus Estimate of a loss of $1.24. Moreover, the bottom line deteriorated from the year-ago quarter’s adjusted earnings of $1.28 per share.

Top-Line Details

Total revenues in the fiscal fourth quarter were $429.1 million compared with $675 million in the year-ago quarter. However, the top line surpassed the consensus estimate of $421 million.

Segmental Information

The National Pen segment generated revenues of $33 million, down from $69.8 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment of the company — reported aggregate revenues of $244.5 million, down from $360.4 million in the year-ago quarter.

The Upload and Print segment’s revenues fell to $118.9 million from $204.8 million in the year-ago quarter. The segment consists of two subgroups —  PrintBrothers and The Print Group. PrintBrothers’ revenues fell to $72.5 million from $117 million in the prior-year quarter. The Print Group generated revenues of $46.7 million, down from $88.1 million reported in the year-ago quarter. Meanwhile, revenues from All Other Businesses increased to $42.5 million from $42.2 million in the year-ago quarter.

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 $219.6 million, down 36.3% on a year-over-year basis. It contributed 51.2% to total revenues. Total selling, general & administrative expenses declined 31.5% year over year to $133.4 million. It contributed 31.1% of revenues in the fiscal fourth quarter.

Gross profit declined 36.5% year over year to $209.5 million, with margin at 48.8%, down 10 basis points year over year. Net interest expenses surged 75.9% year over year to $27.8 million.

Balance Sheet and Cash Flow

As of Jun 30, 2020, Cimpress had $45 million in cash and cash equivalents compared with $35.3 million in the prior-year quarter. Also, the company’s total debt (net of issuance costs) was $1,433.6 million, up from $1,023.6 million in the year-ago quarter.

In the fiscal fourth quarter, Cimpress refrained from buying back any shares. However, in fiscal 2020, Cimpress repurchased 5,002,018 shares for $627 million.

For fiscal 2020, net cash provided by operating activities was $338.4 million compared with $331.1 million in the previous fiscal year.

Order Trends

The company mentioned that its consolidated bookings recorded a decline of 19% on a year-over-year basis in June. For July, the company anticipates its consolidated bookings to decline roughly 5% year-over-year.

Outlook

The company has not provided earnings and revenue projections for the first quarter and fiscal 2021.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks are Griffon Corporation GFF, AGCO Corporation AGCO and Avery Dennison Corporation AVY. While Griffon and AGCO currently sport a Zacks Rank #1 (Strong Buy), Avery Dennison carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Griffon has a trailing four-quarter earnings surprise of 21.76%, on average.

AGCO has a trailing four-quarter earnings surprise of 41.73%, on average.

Avery Dennison has a trailing four-quarter earnings surprise of 7.70%, on average.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AGCO Corporation (AGCO) : Free Stock Analysis Report
 
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
 
Cimpress plc (CMPR) : Free Stock Analysis Report
 
Griffon Corporation (GFF) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.