Cimpress Q2 Earnings & Revenues Miss Estimates, Increase Y/Y

Cimpress plc CMPR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings of $2.36 per share, which missed the Zacks Consensus Estimate of $2.40. The company had reported adjusted earnings of $2.14 per share in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.CMPR’s Top-Line DetailsTotal revenues were $939.2 million, reflecting an increase of 1.9% from $921.4 million in the year-ago quarter. The organic constant-currency revenue growth was 2% year over year, driven by growth in each of its businesses. The top line missed the Zack Consensus Estimate of $964 million.Cimpress plc Price, Consensus and EPS Surprise Cimpress plc price-consensus-eps-surprise-chart | Cimpress plc QuoteSegmental InformationThe National Pen segment generated revenues of $131.4 million, up from $130.1 million in the year-ago quarter. Our estimate was $133.6 million.Vista — the largest revenue-generating segment — reported aggregate revenues of $497.7 million compared with $485.4 million in the year-ago quarter. Our estimate was $517.9 million.The Upload and Print segment’s revenues increased to $273.1 million from $257.7 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group.PrintBrothers’ revenues increased to $174.5 million from $165.6 million in the year-ago period. Our estimate was $175.7 million. The Print Group generated revenues of $98.6 million, up from $92.1 million reported in the year-ago quarter. Our estimate was $93.8 million.Revenues from All Other Businesses were $60.3 million compared with $59.8 million reported a year ago. Our estimate was $61.7 million.CMPR’s Margin DetailsCimpress' cost of revenues was $489.3 million, up 5.6% on a year-over-year basis. Marketing and selling expenses totaled $223.9 million, up 5.7% year over year. General & administrative expenses were $56.9 million, up from $48.8 million reported in the year-ago fiscal quarter.Gross profit decreased 1.7% year over year to $450 million. The margin was 48%, down 200 basis points year over year. Net interest expenses fell 4.6% year over year to $29.2 million. Adjusted EBITDA fell 20.7% year over year to $132.3 million.Balance Sheet and Cash FlowAs of Dec. 31, 2024, Cimpress had $224.4 million of cash and cash equivalents compared with $203.8 million at the end of the fourth quarter of fiscal 2024.Exiting the fiscal second quarter, CMPR’s long-term debt was $1.58 billion, marginally down from the fourth quarter of fiscal 2024-end figure.During the fiscal second quarter, net cash provided by operating activities was $176.5 million compared with $175 million in the year-ago quarter. It repurchased shares worth $42.4 million during the quarter.CMPR’s OutlookFor fiscal 2025, Cimpress expects revenues to increase at least 3% on a reported basis and 4% on an organic constant-currency basis. Its operating income is expected to be at least $233.9 million, indicating about 5% decrease year over year. Adjusted EBITDA is projected to be at least $440 million for the year.The company anticipates generating cash from operating activities of a minimum of $289 million and free cash flow (adjusted) of at least $157 million.For fiscal 2025, Cimpress expects to reduce net leverage. The company hopes to exit fiscal 2025 with a net leverage of 3.0x trailing-12-month EBITDA.Zacks Rank & Stocks to ConsiderCMPR currently carries a Zacks Rank #3 (Hold).Some better-ranked companies are discussed below:Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has remained stable.EnerSys ENS currently sports a Zacks Rank of 1. ENS delivered a trailing four-quarter average earnings surprise of 1.6%.In the past 60 days, the consensus estimate for Enersys’ fiscal 2025 (ending March 2025) earnings has increased 10.2%.Resideo Technologies REZI presently carries a Zacks Rank #2 (Buy). REZI delivered a trailing four-quarter average earnings surprise of 27.3%.In the past 60 days, the consensus estimate for Resideo Technologies’ 2024 earnings has been stable.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Graham Corporation (GHM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Cimpress plc (CMPR): Free Stock Analysis Report Resideo Technologies, Inc. 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