Vistaprint Earnings: Here’s Why Investors are Bidding Up Shares

Vistaprint (NASDAQ:VPRT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.4%.

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Vistaprint Earnings Cheat Sheet

Results: Net income increased 13.25% to $35.9 million ($1.02 per diluted share) in the quarter versus a net gain of $31.7 million in the year-earlier quarter.

Revenue: Rose 16.15% to $348.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vistaprint N.V. reported adjusted net income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.75. It beat the average revenue estimate of $341.53 million.

Quoting Management: Robert Keane, president and chief executive officer said, “We delivered good results for our consumer and holiday business around the world. We continued to execute well in North America. Though our European growth rate improved versus our disappointing first quarter results, we believe this was primarily due to the seasonal strength of our holiday-related business in Europe, and we continue to expect our European marketing execution turn-around to take time and significant effort. Turning to profit, our gross margins continued to expand, despite incurring incremental costs associated with product quality improvements and new product launches. We believe a significant portion of this success is due to our strategic commitment to invest in world-class manufacturing capabilities. Our quarterly earnings per share were above our expectations, due in part to our strong gross margins and one-time favorability in our tax rate.”

Key Stats:

Revenue increased 38.53% from $251.42 million in the previous quarter. Net income increased to $35.9 million in the quarter versus a net loss of $1.7 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.38 to a profit $0.37. For the current year, the average estimate has moved down from a profit of $1.75 to a profit of $1.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)