Cimpress (CMPR) Shares Decline 8% Since Q1 Earnings Release
Cimpress plc CMPR reported lackluster first-quarter fiscal 2022 results, wherein earnings missed the Zacks Consensus Estimate by 9% and sales missed the same by 1.9%. Shares of the company have declined 8.1% since the earnings release on Oct 26.
CMPR incurred an adjusted loss of 97 cents per share, wider than the Zacks Consensus Estimate of a loss of 89 cents. Cimpress reported EPS of 9 cents per share in the year-ago quarter.
Top-Line Details
Total revenues in the fiscal first quarter were $703.4 million, reflecting an increase of 7% from $657.6 million in the year-ago quarter. The organic constant-currency revenue growth was 14%, driven by growth across all businesses and markets through increased pricing and customer demand. However, the top line missed the consensus estimate of $717 million.
Segmental Information
The National Pen segment generated revenues of $81.7 million, up from $69.3 million in the prior-year quarter. Vistaprint — the largest revenue-generating segment — reported aggregate revenues of $369.4 million, up from $349.5 million in the year-ago quarter.
The Upload and Print segment’s revenues increased to $209.4 million from $198 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. PrintBrothers’ revenues increased to $132.7 million from $125.4 million. The Print Group generated revenues of $76.8 million, up from $72.8 million. Revenues from All Other Businesses increased to $51.8 million from $47.9 million.
Cimpress plc Price and Consensus
Cimpress plc price-consensus-chart | Cimpress plc Quote
Margin Details
In the quarter, Cimpress' cost of revenues was $377.7 million, up 11.4% on a year-over-year basis. The metric represented 53.7% of total revenues. Total selling, general & administrative expenses were $255 million, up 15.3%. The same represented 36.3% of total revenues in the quarter.
Gross profit increased 2.2% year over year to $326 million. The margin was 46.3%, down 220 basis points due to inflationary pressure on input costs and product mix shifts in Vista. Net interest expenses fell 3.5% to $24.8 million.
Balance Sheet and Cash Flow
As of Sep 30, 2022, Cimpress had $132.1 million of cash and cash equivalents compared with $277.1 million at the end of the fourth quarter of fiscal 2022. Also, CMPR’s total debt (net of issuance costs) was $1,664.4 million. In fiscal first quarter, Cimpress refrained from buying back shares.
In fiscal 2022, net cash used in operating activities was $25.3 million against $36.6 million cash provided a year ago.
Zacks Rank & Stocks to Consider
CMPR currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies are discussed below.
Enerpac Tool Group Corp. EPAC delivered an average four-quarter earnings surprise of 3.4%. EPAC presently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 24.1% in the past six months.
iRobot Corporation IRBT presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 6.5% in the past six months.
Reliance Steel & Aluminum Co. RS presently carries a Zacks Rank of 2. Its earnings surprise in the last four quarters was 13.6%, on average.
In the past 60 days, RS’s earnings estimates have increased 0.1% for 2022. The stock has popped up 0.9% in the past six months.
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