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Results: Cimpress plc Delivered A Surprise Loss And Now Analysts Have New Forecasts

Simply Wall St
·3 min read

It's been a sad week for Cimpress plc (NASDAQ:CMPR), who've watched their investment drop 10% to US$73.40 in the week since the company reported its quarterly result. Things were not great overall, with a surprise (statutory) loss of US$0.41 per share on revenues of US$587m, even though the analysts had been expecting a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Cimpress

earnings-and-revenue-growth
earnings-and-revenue-growth

After the latest results, the two analysts covering Cimpress are now predicting revenues of US$2.59b in 2021. If met, this would reflect a modest 6.5% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 73% to US$3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.63b and earnings per share (EPS) of US$4.25 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at US$119, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Cimpress' revenue growth is expected to slow, with forecast 6.5% increase next year well below the historical 11%p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% next year. So it's pretty clear that, while Cimpress' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$119, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cimpress going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Cimpress is showing 5 warning signs in our investment analysis , and 1 of those can't be ignored...

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.