Financial Data and Key Metrics Changes - In Q4 FY 2024, consolidated revenue grew 6% on both a reported basis and organic constant currency basis [3] - For the full year, revenue grew 7% on a reported basis and over 5% on an organic constant currency basis [3] - Adjusted EBITDA increased by $5 million year-over-year in Q4 to $119 million, despite currency headwinds of over $3 million [3][4] - Full year adjusted EBITDA grew $129 million year-over-year to $469 million, representing a 38% increase [4] - Adjusted EBITDA margins improved by over 300 basis points to 14.2% in FY 2024 [4] Business Segment Data and Key Metrics Changes - Every segment accelerated revenue growth sequentially in Q4, except for National Pen, which reduced advertising spend impacting revenue growth but improved profitability [4] - Vista experienced growth in per customer value and had its sixth consecutive quarter of growth in the number of customers served [5] Market Data and Key Metrics Changes - The company noted a shift towards direct-to-customer e-commerce models, impacting reseller dynamics in the Print Group [12][13] - Revenue growth in Upload and Print has been primarily driven by volume, with a muted growth in businesses serving resellers [14] Company Strategy and Development Direction - The company plans to increase capital expenditures to enhance manufacturing and supply chain advantages, focusing on operational execution [16][18] - Investments will target production efficiency, new product introductions, and quality improvements [18][19] - The multiyear outlook remains positive, with expectations for mid-single-digit organic constant currency revenue growth and adjusted EBITDA growth slightly faster than revenue [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and operational capabilities, attributing it to significant investments made over the past six years [31] - The company is focused on leveraging scale-based advantages and improving customer value [31] Other Important Information - Adjusted free cash flow was $117 million for Q4 and $261 million for the full year, marking the highest cash flow results for both periods [5][6] - The company repurchased 1.7 million shares for $157 million in FY 2024, reducing shares outstanding by 7% [6] Q&A Session Summary Question: Can you provide an apples-to-apples breakdown of run rate EBITDA growth for Q4 FY '24 versus Q4 FY '23? - Management highlighted that currency negatively impacted EBITDA by over $3 million and noted onetime benefits from the previous year that did not repeat [9][10] Question: Can you talk about the reseller challenges in Print Group? - Management clarified that they do not see competitors "eating their lunch" and emphasized the shift towards direct-to-customer models [12][13] Question: What makes now the time to accelerate capital expenditures? - Management indicated that the focus on operational execution and the financial strength achieved over the past years justify the increase in capital expenditures [16][18] Question: Any new thinking about refinancing the 2026 bonds? - Management stated there are no new developments but confirmed they are regularly considering refinancing options [20] Question: What are the plans for the small EUR 46 million TLB tranche? - Management confirmed the plan is to hold the tranche until maturity unless circumstances change [21] Question: How do we increase the likelihood that organic investments in Vista are attractive? - Management discussed improvements in data analytics, organizational changes, and regular progress reviews to enhance investment outcomes [22][24][27]

Core Viewpoint - Cimpress plc reported strong fourth-quarter fiscal 2024 results, with adjusted earnings significantly exceeding expectations and revenue growth driven by all business segments [1][2]. Financial Performance - Adjusted earnings per share for Q4 fiscal 2024 were $4.33, surpassing the Zacks Consensus Estimate of 77 cents, and up from $1.08 in the same quarter last year [1]. - Total revenues reached $832.6 million, a 5.6% increase from $788.8 million year-over-year, with organic constant-currency revenue growth of 6% [2]. Segmental Information - The National Pen segment generated revenues of $84 million, slightly up from $83 million year-over-year, but below the estimate of $87.8 million [3]. - The Vista segment, the largest revenue contributor, reported revenues of $442 million, an increase from $410 million year-over-year, exceeding the estimate of $437.8 million [3]. - The Upload and Print segment's revenues rose to $267 million from $253 million year-over-year, with PrintBrothers generating $170 million and The Print Group $97 million [4]. - Revenues from All Other Businesses were $55 million, up from $53 million year-over-year, surpassing the estimate of $52.6 million [5]. Margin and Cost Analysis - Cost of revenues increased to $428.2 million, a 3.8% rise year-over-year, while marketing and selling expenses rose by 7.5% to $194.3 million [6]. - Gross profit increased by 7.5% year-over-year to $404 million, with a gross margin of 49%, up 100 basis points from the previous year [6]. Balance Sheet and Cash Flow - As of June 30, 2024, Cimpress had $203.8 million in cash and cash equivalents, up from $130.3 million a year ago [7]. - Long-term debt decreased to $1.59 billion from $1.63 billion at the end of the previous fiscal year [7]. - Net cash provided by operating activities was $360.7 million, significantly higher than $130.3 million in the year-ago period [7]. Outlook - For fiscal 2025, the company anticipates that currency movements will have a neutral impact on adjusted EBITDA compared to fiscal 2024 [8].

Core Insights - Cimpress reported revenue of $832.61 million for the quarter ended June 2024, reflecting a year-over-year increase of 5.6% and an EPS of $4.33, significantly up from $1.08 in the same quarter last year [1] - The revenue slightly missed the Zacks Consensus Estimate of $832.9 million by 0.04%, while the EPS exceeded expectations by 462.34% against a consensus estimate of $0.77 [1] Revenue Breakdown - Revenue from Vista was $441.91 million, surpassing the average estimate of $438.34 million, marking a year-over-year increase of 7.8% [3] - Revenue from Inter-segment eliminations was reported at -$15.53 million, worse than the estimated -$13.60 million, but showed a significant year-over-year improvement of 61.2% [4] - Revenue from All Other Businesses reached $54.62 million, exceeding the average estimate of $52.60 million, with a year-over-year change of 3.9% [5] - National Pen generated revenue of $84.18 million, below the estimated $89.04 million, but still reflecting a year-over-year increase of 1.6% [6] Stock Performance - Cimpress shares have returned 2.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by 0.4% [6] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [6]

分组1 - Cimpress reported quarterly earnings of $4.33 per share, significantly exceeding the Zacks Consensus Estimate of $0.77 per share, representing an earnings surprise of 462.34% [1] - The company posted revenues of $832.61 million for the quarter ended June 2024, slightly missing the Zacks Consensus Estimate by 0.04%, compared to $788.85 million in the same quarter last year [2] - Cimpress has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once during the same period [2] 分组2 - The stock has gained approximately 14% since the beginning of the year, matching the S&P 500's gain of 14% [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $808.19 million, and for the current fiscal year, it is $4.25 on revenues of $3.48 billion [7] - The Zacks Industry Rank for Consumer Services - Miscellaneous is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Revenue Growth - Revenue for Q4 FY2024 grew 6% on a reported basis and on an organic constant-currency basis, totaling $832.6 million[3]. - Full-year FY2024 revenue grew 7% on a reported basis and 5% on an organic constant-currency basis, reaching $3.29 billion[5]. - Vista segment revenue grew 8% in Q4 FY2024, driven by customer experience improvements and new product introductions[7]. - National Pen revenue grew 2% in Q4 FY2024, supported by strong e-commerce performance[9]. - The company anticipates a revenue increase in PrintBrothers, projecting Q4 FY2024 revenue at $24,900, up from $20,480 in Q4 FY2023[18]. - The company expects a revenue growth in constant currency of 5% for FY2024[92]. - The overall reported revenue growth for FY2023 was 7%, with a constant currency growth of 5% projected for FY2024[92]. - National Pen segment reported revenue growth of 7% in FY2023, with constant currency growth of 12%[94]. Profitability and EBITDA - Adjusted EBITDA for Q4 FY2024 increased by $5.4 million year over year to $119.4 million, with a negative impact of $3.1 million from currency movements[3]. - Consolidated operating income for FY2024 increased by $190 million year over year to $247.4 million[5]. - Adjusted EBITDA for FY2023 was $339,832, reflecting a year-over-year growth of 21% from FY2022's $281,063[18]. - Adjusted EBITDA margin improved to 14% in FY2023, up from 10% in FY2022, with expectations to maintain this margin in FY2024[18]. - The company expects adjusted EBITDA to reach $468.7 million in FY2024, indicating a projected growth of 37.9%[100]. Cash Flow and Capital Expenditures - Operating cash flow for Q4 FY2024 rose by $63.3 million year over year to $125.1 million[4]. - Net cash provided by operating activities in Q4 FY2023 was $61,815, a decline from Q4 FY2022's $87,820, but expected to rebound to $125,095 in Q4 FY2024[19]. - Capital expenditures for FY2023 totaled $54,927, with a forecast of $58,307 for FY2024, indicating ongoing investment in growth[20]. - Net cash provided by operating activities was $125,095 for the three months ended June 30, 2024, up from $61,815 in the same period last year[85]. - Cash interest paid in Q4 FY23 was $132.3 million, compared to $98.1 million in Q4 FY22, indicating a 34.7% rise[104]. Share Repurchase and Debt Management - The company repurchased 1.7 million shares for $157 million during FY2024, representing a 7% reduction in shares outstanding[5]. - The company’s net debt as of Q4 FY2023 was $1,473 million, a slight decrease from $1,494 million in Q2 FY2023[34]. - Consolidated net leverage decreased from 5.52 in Q4 FY22 to 1.78 in Q4 FY24, indicating improved financial stability[36]. - The company emphasizes the importance of maintaining compliance with debt covenants and managing economic conditions[108]. Market Outlook and Future Guidance - The company expects consolidated constant-currency organic revenue to grow annually at mid-single-digit rates in the coming years[11]. - Future outlook includes expectations for revenue growth and adjusted EBITDA, with a focus on capital allocation strategies[107]. - Forward-looking statements indicate potential risks including supply chain constraints and market changes that could affect performance[109]. Segment Performance - VISTA's quarterly revenue reached $485 million in Q4 FY24, reflecting a 14% growth compared to the previous year[37]. - Annual revenue for VISTA in FY24 was $1,742 million, representing an 11% increase from FY23[43]. - Segment EBITDA for VISTA was $103 million in Q4 FY24, with a margin of 21%[41]. - Segment EBITDA for FY2024 was $90 million, representing a margin of 14%[56]. - Segment EBITDA for the Upload & Print segment in FY2024 was $5.2 million, with a negative impact of $0.5 million from currency[78]. Currency Impact - Currency impacts negatively affected reported revenue growth in Q4 FY2024 by less than 100 basis points[75]. - Adjusted EBITDA for FY2024 was negatively impacted by currency fluctuations, with a reported loss of $0.8 million in other income[75]. - The impact of currency fluctuations on total company revenue was a positive 3% in Q4FY23, while the impact on PrintBrothers was a negative 2%[90]. - Currency impact on reported revenue for FY2023 was 8%, with a negative impact projected at (3%) for FY2024[94].

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower. This marketing materials maker is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of -28.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering an ...

Core Insights - The article emphasizes the importance of identifying stocks with strong price trends and solid fundamentals for potential investment opportunities [1][2]. Group 1: Stock Performance - Cimpress (CMPR) has shown a price increase of 11.1% over the past four weeks, indicating a sustained upward trend [2]. - Over a 12-week period, CMPR has gained 5.7%, reflecting investor confidence in its potential upside [7]. - CMPR is currently trading at 81.5% of its 52-week high-low range, suggesting it may be on the verge of a breakout [2]. Group 2: Fundamental Strength - CMPR holds an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [3]. - The stock carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [8]. - The Zacks Rank system has a strong track record, with Rank 1 stocks generating an average annual return of +25% since 1988, suggesting that CMPR's price trend may remain stable [9]. Group 3: Investment Strategy - The article highlights the significance of ensuring that a stock's price trend is sustainable, supported by sound fundamentals and positive earnings estimate revisions [6]. - Investors are encouraged to utilize tools like the Zacks Research Wizard to backtest stock-picking strategies and identify profitable opportunities [4][10].

Some better-ranked companies are discussed below: Significant growth in the e-commerce and telesales channels is driving the National Pen segment. The segment's revenues grew 8% year over year in the first nine months of fiscal 2024. In the same period, the Upload & Print segment's revenues rose 8.5% year over year, supported by increasing order rates. Driven by business strength, Cimpress expects total sales to increase at least 7%. Cimpress' effective cost-control measures are supporting its margin perfor ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by $25 million year-over-year in Q3 to $94 million, with adjusted EBITDA margins rising nearly 300 basis points to just over 12% due to gross margin expansion and operating expense efficiency [4][6][15] - Adjusted free cash flow was an outflow of $16.6 million this quarter, which is a $3.8 million increase in outflow year-over-year despite improved adjusted EBITDA, attributed to seasonal working capital patterns [5][15] - Consolidated revenue grew 5% on a reported basis and 4% on an organic constant currency basis, with a $6 million impact from the timing of the Easter holiday [14][15] Business Line Data and Key Metrics Changes - The Upload & Print businesses and National Pen showed improved trends despite tough comparisons from the previous year, while growth in "all other businesses" remained flat [4][6] - Home decor, particularly canvas prints, is a significant part of BuildASign's revenue, but has seen a normalization of demand post-pandemic [20][21] - National Pen's capitalized software has been consistently around 1% of revenue, reflecting strong growth in its e-commerce segment [27][55] Market Data and Key Metrics Changes - BuildASign's revenue is impacted by its exposure to the real estate and DIY home decor markets, with real estate accounting for about 10% of its revenue [21][47] - The signage category in both BuildASign and Vista has been strong, with expectations of benefiting from the upcoming political cycle in the U.S. [49] Company Strategy and Development Direction - The company plans to increase CapEx in FY2025 for new product introductions and efficiency improvements, while not expecting material M&A [8][40] - The new leverage policy targets net leverage at approximately 2.5x or below, with flexibility to go up to 3.0x for attractive investments [40][62] - The company emphasizes organic investments in OpEx and CapEx, with a focus on maintaining operational rigor and high return thresholds for capital allocation [31][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding prior guidance, citing strong results and improved profitability [6][15] - The company anticipates organic constant currency revenue growth at mid-single-digit rates and adjusted EBITDA growth slightly faster than revenue [16][40] - Management acknowledged the impact of external factors, such as currency headwinds and holiday timing, on financial performance [19][45] Other Important Information - The company ended the quarter with cash and marketable securities of $160.8 million and full access to a $250 million revolving credit facility [15] - A total of 1.3 million shares were repurchased for $120 million at an average price of $93 per share, representing about 5% of shares outstanding [38][58] Q&A Session Summary Question: Why didn't EBITDA grow more than $25 million despite cost savings? - The contribution profit growth dropped through to EBITDA due to operating expense efficiency and cost reductions implemented last year, along with a slight impact from the Easter holiday timing [10][44] Question: What percentage of BuildASign's revenue comes from real estate and DIY home decor? - BuildASign's revenue is impacted by real estate and DIY home decor, with real estate accounting for about 10% of revenue, but the connection to home decor is more about channel performance than direct market exposure [21][47] Question: What is the timeline for refinancing high-yield notes? - The company has not made decisions on refinancing yet, but they have time before maturity and will continue to focus on consistent execution [29][57] Question: What IRR thresholds are targeted for capital allocation activities? - The company targets an IRR of 15% for M&A and new product introductions, with a higher threshold for organic investments [32][60] Question: Why is the leverage policy set at 2.5x instead of 1x or 4x? - The leverage policy is designed to balance risk management and operational flexibility, allowing for resilience during economic shocks while still providing returns to equity [35][62]

Segment Revenue Segment Profitability 36 Central and Corporate Costs During the three and nine months ended March 31, 2024, central and corporate costs increased by $5.0 million and $4.4 million, as compared to the prior-year periods. The increases were largely driven by $8.7 million and $15.5 million of increased share-based compensation expense, respectively, due to a higher grant pool and the impact from our 2024 PSU grants that have an accelerated expense profile as well as expense volatility from chang ...