Why VistaPrint’s Shares Tumbled

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of VistaPrint (Nasdaq: VPRT  ) have slipped 12%, after the company's earnings report bested analyst expectations for earnings per share, but fell short of revenue estimates. The company also lowered its revenue guidance for the fiscal year that ends next June.

So what: VistaPrint reported $0.25 in EPS for the quarter on $251.4 million in revenue, beating EPS estimates by $0.01, but falling well short of the revenue consensus, which was $258.1 million. For the full fiscal year, VistaPrint reduced its revenue guidance by $10 million on both high and low ends, pegging it between $1.165 billion to $1.215 billion, which barely clears the consensus estimate of $1.2 billion. Full-year EPS guidance falls in a wide range, between $1.62 and $1.92, against expectations of $1.83.

Now what: Analysts at Stephens and Barrington both downgraded the stock from buy to hold after the report, but Topeka analysts said the drop looked like a buying opportunity. Now that VistaPrint's forward P/E has dropped to 12.3, Topeka's analysts seem to be closer to the right side. Keep in mind, though, that GAAP EPS, which VistaPrint helpfully offers, is projected to be $0.40 to $0.70 for the 2013 fiscal year. That's a significant drop from the latest trailing 12-month EPS (prior to today's release) of $1.13.

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