It has been about a month since the last earnings report for Cimpress (CMPR) . Shares have added about 16.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cimpress due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Cimpress' Q1 Earnings Miss Estimates, Revenues Inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-51539 _________________________________ Cimpress plc (Exact Name of Registrant as Specifie ...

Core Viewpoint - Cimpress' stock experienced a significant decline following the release of mixed Q1 2025 results, raising questions about its investment potential [1][2]. Financial Performance - For Q1 2025, analysts expected earnings of approximately $0.29 per share on revenue near $799 million, but Cimpress reported a net loss of $0.50 per share despite a 6% year-over-year revenue increase to $805 million [2]. - Sales growth was observed across all five reportable business groups, but operating profits decreased in the Vista and PrintBrothers divisions [3]. - Free cash flows diminished due to unfavorable year-over-year comparisons of product inventory levels, compounded by accelerated interest payments on refinanced debt [3]. Future Outlook - Management anticipates relatively soft second-quarter results influenced by calendar effects and the U.S. election, but expects profitable growth in the long term as refinancing expenses will not recur [4]. - The company is actively engaging in a stock buyback program, viewing the current stock price as an opportunity for both the company and potential investors [5]. Valuation Metrics - Cimpress' stock has declined 22% over the last quarter, currently trading at valuation ratios of 10.7 times earnings and 0.5 times sales, suggesting it may be a valuable addition to a growth-oriented portfolio at these low prices [5].

Financial Data and Key Metrics - Consolidated revenue grew 6% on both a reported basis and an organic constant-currency basis [15] - Adjusted EBITDA declined slightly year-over-year in Q1 to $88 million, inclusive of currency headwinds of just under $1 million [16] - Free cash flow was lower year-over-year, driven by higher outflows from changes in working capital and increased cash interest payments of $10.6 million due to senior notes refinancing [21][22] - The company repurchased $168 million worth of shares, representing about 8% of its shares, over the last three quarters, and an additional $9 million in October [24][25] Business Line Data and Key Metrics - Segment EBITDA increased in Upload & Print, National Pen, and the "all other businesses" segment, with higher gross margins across the board [18] - Vista's organic constant-currency revenue growth was strong at 8%, with Europe performing well across the board, while North America saw a slight decline in Business Cards revenue [18][19] - Advertising spend for Vista grew about 12% year-over-year, impacting the flow-through in Q1 [20] - The company is seeing strong growth in packaging and logo apparel, with growth rates exceeding 25% annually [8] Market Data and Key Metrics - The company is experiencing growth in Europe and solid revenue growth in North America, though with some headwinds in Business Cards [19] - The holiday peak season is approaching, with five fewer selling days between American Thanksgiving and Christmas compared to last year, which could dampen demand [26] - The U S Election is also expected to impact demand during the holiday season [26] Company Strategy and Industry Competition - The company is focused on improving customer experience, driving efficiency, and growing lifetime customer value through more complex products and customer experience improvements [6][7][8] - Vista is repositioning itself away from a discount-driven brand image, focusing on high-value customers and modern technology infrastructure [9] - The company is leveraging cross-Cimpress fulfillment to accelerate new product introductions and reduce production costs [61][62] - The company is investing in new product categories like flexible packaging and corrugated packaging, which are growing at over 25% annually [8] Management Commentary on Operating Environment and Future Outlook - The company remains confident in its ability to deliver growth in revenue, adjusted EBITDA, and free cash flow, despite slight declines in Q1 [16] - Management expects currency impacts on adjusted EBITDA to be approximately neutral for the full fiscal year [47] - The company plans to continue share repurchases if prices remain attractive, while maintaining a leverage target of 2.75 times EBITDA or below [25][35] Other Important Information - The company successfully completed a high-yield notes offering, extending its debt maturity profile and strengthening its balance sheet [23] - The company is allocating capital to significant organic investments, including technology, talent, and new product introductions [24] - The company is focusing on operational consistency and long-term strategic investments, rather than reacting to short-term market fluctuations [37][38] Q&A Session Summary Question: What makes the company confident in making high levels of growth investments and share repurchases? - The company is confident due to strong financial results, including $10 in adjusted free cash flow per diluted share in the last fiscal year, and a robust cash flow per share relative to the share price [30][31] - The company is operating within a clearly communicated leverage policy and has a track record of deleveraging when needed [33] Question: Will the attractive share price impact investment priorities given the leverage constraint? - The company plans to take advantage of the current share price opportunity, potentially investing over $100 million in share repurchases this fiscal year, while maintaining its leverage target [35] - The company will continue to prioritize operational consistency and long-term strategic investments, though it will consider trade-offs in CapEx, OpEx, and advertising [36][37] Question: What drove the $18 million quarter-over-quarter swing in other income/expense? - The swing was primarily driven by realized and unrealized currency gains and losses, with realized losses on currency hedges impacting adjusted EBITDA and cash flow [41][44] Question: What caused the large use of cash in payables last quarter? - The use of cash was driven by timing differences, inventory ramp-up for the holiday season, and specific supplier-related factors, such as changes in technology contract terms [49][54][55] Question: Will CapEx investments planned for 2025 still happen? - The company expects CapEx investments to occur later in the year, with some fluctuations due to testing and payment terms for capital equipment [57][58] Question: Why did BuildASign sales not increase materially due to the election cycle? - The election cycle had a positive but modest impact on signage revenue, which was partially offset by declines in home decor product sales [60] - Intersegment revenue growth was driven by successful cross-Cimpress fulfillment between Vista and BuildASign [61][62] Question: Can the modest decline in business cards and consumer products be reversed? - The company expects flat revenues in these categories, with growth in newer categories like signage, marketing materials, and packaging driving overall growth [66][67] - The company is focusing on improving customer experiences and product ranges to protect profitability in these mature categories [68]

Core Insights - Cimpress plc (CMPR) reported a first-quarter fiscal 2025 adjusted loss of 50 cents per share, contrasting with the Zacks Consensus Estimate of earnings of 30 cents per share and adjusted earnings of 17 cents per share in the same quarter last year [1] Financial Performance - Total revenues for the quarter reached $805 million, marking a 6% increase from $757.3 million in the year-ago quarter, and beating the Zacks Consensus Estimate of $801 million [2] - Organic constant-currency revenue growth was also 6% year over year, driven by growth across all business segments [2] Segment Performance - The National Pen segment generated revenues of $93.4 million, up from $86.8 million in the year-ago quarter, slightly above the estimate of $93 million [3] - The Vista segment, the largest revenue generator, reported revenues of $429.5 million compared to $396.9 million in the year-ago quarter, exceeding the estimate of $425.7 million [3] - The Upload and Print segment's revenues increased to $244.5 million from $231.9 million in the year-ago quarter, with PrintBrothers generating $160.4 million and The Print Group $84.1 million [4] - Revenues from All Other Businesses were $57.1 million, up from $51.4 million reported a year ago, surpassing the estimate of $52.7 million [5] Cost and Margin Analysis - Cimpress' cost of revenues was $422.7 million, reflecting a 6% year-over-year increase, while marketing and selling expenses totaled $203.8 million, also up 6% year over year [6] - Gross profit increased by 6.4% year over year to $382 million, maintaining a stable margin of 47% [7] - Adjusted EBITDA fell by $1 million year over year to $87.8 million [7] Balance Sheet and Cash Flow - As of September 30, 2024, Cimpress had $153 million in cash and cash equivalents, down from $203.8 million at the end of the previous fiscal quarter [8] - Long-term debt was reported at $1.59 billion, slightly down from the previous quarter [8] - Net cash provided by operating activities was $4.4 million, a significant decrease from $42.3 million in the year-ago period, with share repurchases amounting to $10.6 million during the quarter [9] Future Outlook - For fiscal 2025, Cimpress aims to reduce net leverage, targeting to exit the fiscal year with net leverage at or below 2.75 times trailing-twelve-month EBITDA [10]

Core Insights - Cimpress reported a quarterly loss of $0.50 per share, significantly missing the Zacks Consensus Estimate of $0.30, and compared to earnings of $0.17 per share a year ago, resulting in an earnings surprise of -266.67% [1] - The company posted revenues of $804.97 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.56% and showing an increase from year-ago revenues of $757.29 million [2] - The stock has underperformed the market, losing about 5.6% since the beginning of the year, while the S&P 500 gained 22.3% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.22 on revenues of $965.55 million, and for the current fiscal year, it is $4.40 on revenues of $3.47 billion [7] - The estimate revisions trend for Cimpress is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - Cimpress operates within the Zacks Consumer Services - Miscellaneous industry, which is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Cimpress may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

| --- | --- | --- | |-------|-------|-------| | | | | | | | | LETTER FROM ROBERT OCTOBER 30, 2024 Dear Investor, Cimpress delivered solid results in the first quarter of fiscal year 2025. Operationally, we continued the strong progress demonstrated in the prior fiscal year with improvements in customer value and new product introduction. Financially, strong revenue growth at Vista bolstered consolidated revenue and adjusted EBITDA declined slightly compared to last year inclusive of negative currency impact ...

Cimpress (CMPR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earnings pictu ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried- ...

I have been discussing Cimpress plc (NASDAQ: CMPR ) in the past, and you can read my previous article published on July 5, 2024. The company is looking to introduce new products I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author ...