Cimpress (CMPR) Shares Rise 1.9% Since Q2 Earnings Release
Cimpress plc CMPR reported second-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.14 per share, which surpassed the Zacks Consensus Estimate of $1.24. Cimpress incurred a loss of 46 cents per share in the year-ago quarter. Following this better-than-expected performance, shares of the company have gained 1.9% since the earnings release on Jan 31.
Top-Line Details
Total revenues in the fiscal second quarter were $921.4 million, reflecting an increase of 9% from $845.2 million in the year-ago quarter. The organic constant-currency revenue growth was 6% year over year, driven by growth in each of its businesses. The top line beat the Zack Consensus Estimate of $901 million.
Segmental Information
The National Pen segment generated revenues of $130.6 million, up from $120.6 million in the year-ago quarter. Our estimate for the quarter was $108.5 million. Vista — the largest revenue-generating segment — reported aggregate revenues of $485.1 million compared with $437.7 million in the year-ago quarter. Our estimate for the quarter was $481.6 million.
The Upload and Print segment’s revenues increased to $258.2 million from $237.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group. In the fiscal second quarter, PrintBrothers’ revenues increased to $165.1 million from $148.6 million reported in the year-ago period. Our estimate for the quarter was $175.7 million.
In the fiscal second quarter, the Print Group generated revenues of $93.3 million, up from $89.3 million reported in the year-ago quarter. Our estimate for the quarter was $102.9 million. Revenues from All Other Businesses were $60.3 million, in line with the year-ago quarter. Our estimate for the quarter was $62.5 million.
Cimpress plc Price, Consensus and EPS Surprise
Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc Quote
Margin Details
In the fiscal quarter, Cimpress' cost of revenues was $463.4 million, up 1.8% on a year-over-year basis. Marketing and selling expenses totaled $211.8 million, up 3.3% year over year. Total general & administrative expenses were $48.8 million, down from $49.8 million reported in the year-ago fiscal quarter.
Gross profit increased 17.4% year over year to $458 million. The margin was 49.7%, up 360 basis points. Net interest expenses rose 7% to $30.6 million.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Cimpress had $274.3 million of cash and cash equivalents compared with $130.3 million at the end of the fourth quarter of fiscal 2023. Also, CMPR’s total debt (net of issuance costs) was $1,626.3 million in the first six months of the year.
In the same time, net cash provided by operating activities was $217.2 million compared with $55.8 million in the year-ago period.
Outlook
For fiscal 2024, the company expects consolidated reported revenue growth (assuming recent currency rates) to be at least 7% compared with at least 8% predicted earlier and organic constant-currency revenue growth to be at least 5%.
CMPR predicts operating income to be at least $230.5 million for the fiscal year and adjusted EBITDA to be at least $455.0 million.
Zacks Rank & Other Stocks to Consider
Cimpress currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked companies are discussed below:
Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has remained steady. The stock has risen 15.1% in the past year.
A. O. Smith Corporation AOS presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 12%.
The Zacks Consensus Estimate for AOS’ 2024 earnings increased 1.5% in the past 60 days. Shares of A. O. Smith have jumped 12.8% in the past year.
Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.8%.
In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2024 (ending June 2024) earnings has increased 0.3%. The stock has risen 57.8% in the past year.
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Cimpress plc (CMPR) : Free Stock Analysis Report
