Vistaprint N.V. Earnings: Sees Another Quarter of Falling Net Income, but Tops Forecasts

Rising revenue was not enough for Vistaprint N.V. (NASDAQ:VPRT) as the business services company saw profit fall in the third quarter. 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 Third Quarter

Results: Net income for Vistaprint N.V. fell to $274,000 (one cent per share) vs. $22.9 million (51 cents per share) a year earlier. This is a decline of 98.8% from the year-earlier quarter.

Revenue: Rose 26.5% to $257.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vistaprint N.V. reported adjusted net income of 29 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 9 cents per share. Analysts were expecting revenue of $254.2 million.

Quoting Management: “We delivered another solid quarter of revenue growth in the third quarter,” said Robert Keane, president and chief executive officer. “We continue to progress against our five-year objectives announced just nine months ago. Revenue was in the upper half of our guidance range with particular strength in new customer acquisition numbers and in North America, where we are further along with the execution of our long-term strategy initiatives. Our earnings per share upside was due to several factors, some of which are timing related, but some of which improve our earnings outlook for the full year.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 25.8%, with the biggest boost coming in the second quarter when revenue rose 28.1% from the year earlier quarter.

The company’s net income has fallen for the last three quarters. In the second quarter, net income fell 6.8% from the year earlier, while the figure fell 24.2% in the first quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 21 cents in the second quarter and by 5 cents in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from a profit of 3 cents a share to a loss of one cent over the last ninety days. For the fiscal year, the average estimate has been unchanged at 91 cents a share.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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