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Cimpress PLC (CMPR) Q3 FY2024 Earnings: Aligns with Analyst Revenue Estimates, Surpasses EPS ...

GuruFocus Research
·3-min read

  • Revenue: Reported at $780.59 million for Q3 FY2024, marking a 5% increase year-over-year, slightly below the estimated $782.85 million.

  • Net Income: Experienced a net loss of $5.18 million, significantly below the estimated net loss of $5.86 million.

  • Earnings Per Share (EPS): Reported a loss of $0.15 per share, falling short of the estimated loss of $0.14 per share.

  • Adjusted EBITDA: Increased by $25.01 million year-over-year to $94.2 million, indicating improved operational efficiency despite currency headwinds.

  • Operating Income: Grew substantially to $39.24 million, up from a loss of $12.20 million in the same quarter last year, driven by lower restructuring charges and cost savings.

  • Free Cash Flow: Adjusted free cash flow saw a decrease of $3.8 million year-over-year, resulting in an outflow of $16.6 million due to higher working capital outflows.

  • Market Capitalization and Share Repurchases: Continued aggressive share repurchase strategy, buying back 1.1 million shares for $100.7 million during the quarter under a $150 million board authorization.

On May 1, 2024, Cimpress PLC (NASDAQ:CMPR) disclosed its third-quarter financial results for fiscal year 2024, demonstrating a solid performance with significant improvements in revenue and earnings per share (EPS). The company's detailed financial outcomes were released in its 8-K filing.

Company Overview

Cimpress PLC invests in and operates a range of customer-focused, entrepreneurial, mass-customization businesses. The company's portfolio includes brands such as Vista, PrintBrothers, The Print Group, and National Pen, with Vista generating the majority of revenue. Cimpress aims to produce individually customized products with the efficiency of mass production.

Financial Performance

The third-quarter results showed a revenue increase of 5% year-over-year, reaching $780.59 million, which aligns with analyst expectations of $782.85 million. This growth was primarily driven by a 5% increase in both reported and organic constant-currency bases in the Vista segment and notable improvements in National Pen and Upload & Print segments.

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EPS for the quarter stood at $0.14, surpassing the analyst estimate of $0.14 per share. This performance reflects effective cost management and operational efficiencies. Adjusted EBITDA saw a significant rise, reaching $94.2 million, up from $69.1 million in the same quarter the previous year, marking a 36% increase.

Operational Highlights and Challenges

Cimpress reported several operational successes, including effective cost reductions and an expanded product range contributing to customer base growth. However, the company noted a decrease in operating cash flow and adjusted free cash flow, primarily due to higher working capital outflows, which could pose challenges if prolonged.

Strategic Initiatives and Outlook

The company continued its share repurchase program, buying back 1.1 million shares for $100.7 million during the quarter. Looking forward, Cimpress remains positive about its revenue growth and operational income projections for FY2024, citing strong underlying business fundamentals and efficient capital management.

Balance Sheet and Cash Flow

As of March 31, 2024, Cimpress reported a strong liquidity position with $160.8 million in cash and marketable securities. The total debt stood at approximately $1.59 billion, with a net leverage ratio of 3.0 times the trailing twelve-month EBITDA, aligning with the company's financial policies.

Conclusion

Cimpress PLC's Q3 FY2024 results reflect a robust financial and operational performance, with significant revenue growth and strategic capital management. The company's focus on innovation, cost efficiency, and market expansion continues to drive its success in the competitive mass-customization market.

For more detailed information, investors are encouraged to review the full earnings report and join the upcoming earnings call scheduled for May 2, 2024.

Explore the complete 8-K earnings release (here) from Cimpress PLC for further details.

This article first appeared on GuruFocus.