Vistaprint Limited Earnings Cheat Sheet: Streak of Three Straight Profit Rises Snapped

Rising costs hurt Vistaprint Limited (NASDAQ:VPRT) in the first quarter as profit dropped from a year earlier. VistaPrint is a printing firm that targets its service to small businesses. It provides high-impact personalized products and services for small businesses and the home.

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Vistaprint Earnings Cheat Sheet for the First Quarter

Results: Net income for the business services company fell to $8.2 million (19 cents per share) vs. $10.8 million (24 cents per share) a year earlier. This is a decline of 24.2% from the year earlier quarter.

Revenue: Rose 24.6% to $212.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VPRT beat the mean analyst estimate of 12 cents per share. Analysts were expecting revenue of $210 million.

Quoting Management: “First quarter revenue and earnings met our expectations, and our full year is off to a good start,” said Robert Keane, president and chief executive officer. “This was a quarter of solid performance against our plan. Four months into our multi-year plan, we remain confident that we are making the right decisions in funding our long-term strategy for growth and competitive advantage. This quarter we made disciplined investments designed to better position us to capture what we believe to be a large opportunity, and build a strong company for many years to come.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 27.1% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of three consecutive quarters of year-over-year profit increases. Net income rose 23.6% in the fourth quarter of the last fiscal year from the year earlier, while the figure rose 41.8% in the third quarter of the last fiscal year and 26.2% in the second quarter of the last fiscal year.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 32 cents per share.

Gross margins grew 0.1 percentage point to 63.2%. The growth seemed to be driven by increased revenue, as the figure rose 24.6% from the year earlier quarter while costs rose 24.2%.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 57 cents per share, down from 73 cents ninety days ago. The average estimate for the fiscal year is $1.13 per share, down from $2.12 ninety days ago.

Competitors to Watch: R.R. Donnelley & Sons Co. (NASDAQ:RRD), Multi-Color Corporation (NASDAQ:LABL), InnerWorkings, Inc. (NASDAQ:INWK), Consolidated Graphics, Inc. (NYSE:CGX), Champion Industries, Inc. (NASDAQ:CHMP), Cenveo, Inc. (NYSE:CVO), Centro Grafico Cegrafico SA (AMEX:CGR), Office Depot (NYSE:ODP), OfficeMax (NYSE:OMX), Staples (NASDAQ:SPLS) and FedEx Kinko’s (NYSE:FDX).

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(Source: Xignite Financials)

 

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