Cimpress plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Cimpress plc (NASDAQ:CMPR) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 3.3% to hit US$921m. Cimpress also reported a statutory profit of US$2.14, which was an impressive 73% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Cimpress
Taking into account the latest results, the most recent consensus for Cimpress from dual analysts is for revenues of US$3.30b in 2024. If met, it would imply a modest 2.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 110% to US$3.32. Before this earnings report, the analysts had been forecasting revenues of US$3.28b and earnings per share (EPS) of US$2.84 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 11% to US$105.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Cimpress' growth to accelerate, with the forecast 5.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Cimpress is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cimpress following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Cimpress. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Cimpress going out as far as 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Cimpress has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
