Cimpress (CMPR) Shares Gain 1.1% Since Q4 Earnings Release
Cimpress plc CMPR reported fourth-quarter fiscal 2023 (ended Jun 30, 2023) adjusted earnings (excluding 1 cent from non-recurring items) of $1.08 per share, which surpassed the Zacks Consensus Estimate of adjusted earnings of 21 cents per share. Cimpress incurred a loss of $1.17 per share in the year-ago quarter. Shares of the company have gained 1.1% since the earnings release on Jul 26.
Top Line Details
Total revenues in the fiscal fourth quarter were $788.8 million, reflecting an increase of 9.1% from $722.8 million in the year-ago quarter. The organic constant-currency revenue growth was also 9.1%, driven by growth across all businesses. The top line beat the Zack Consensus Estimate of $723 million.
Segmental Information
The National Pen segment generated revenues of $82.9 million, up from $75.6 million in the prior-year quarter. Our estimate for the quarter was $89.8 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $410.1 million, up from $368.1 million in the year-ago quarter. Our estimate for the quarter was $396.2 million.
The Upload and Print segment’s revenues increased to $252.9 million from $235.2 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal fourth quarter, PrintBrothers’ revenues increased to $157.6 million from $143.9 million reported in the year-ago period. Our estimate for the quarter was $142.7 million.
In the fiscal fourth quarter, the Print Group generated revenues of $95.3 million, up from $91.3 million reported in the year ago quarter. Our estimate for the quarter was $86.7 million. Revenues from All Other Businesses increased to $52.6 million from $53.6 million in the quarter. Our estimate for the quarter was $49.7 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 $412.6 million, up 7.9% on a year-over-year basis. Marketing and selling expenses totaled $180.7 million, down 14.5% year over year. Total general & administrative expenses were $52.8 million, down from $53.2 million reported in the year-ago quarter.
Gross profit increased 10.6% year over year to $376 million. The margin was 47.7%, up 60 basis points. Net interest expenses rose 19.7% to $28.9 million.
Balance Sheet and Cash Flow
As of Jun 30, 2023, Cimpress had $130.3 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 $1,481 million.
In fiscal 2023, net cash provided by operating activities was $130.3 million, compared with $219.5 million cash provided a year ago.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) of at least 8% and organic constant-currency revenue growth of at least 6%.
CMPR predicts operating income to be at least $205 million for the fiscal year and adjusted EBITDA to be least $420 million. The company also expects conversion of adjusted EBITDA to adjusted free cash flow to be approximately 40% for fiscal 2024.
Zacks Rank & Stocks to Consider
CMPR currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:
Greif, Inc. GEF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
GEF delivered a trailing four-quarter earnings surprise of 7.7%, on average. GEF’s earnings estimates have increased 13.4% for fiscal 2023 in the past 60 days. Its shares have risen 4.1% in the past year.
Caterpillar Inc. CAT presently carries a Zacks Rank #2 (Buy). CAT’s earnings surprise in the last four quarters was 14.3%, on average.
In the past 60 days, estimates for Caterpillar’s earnings have increased 1.4% for 2023. The stock has gained 33.7% in the past year.
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