The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Vistaprint beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins contracted.
Vistaprint reported revenue of $299.9 million. The nine analysts polled by S&P Capital IQ expected revenue of $294.8 million. Sales were 28% higher than the prior-year quarter's $234.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.95. The nine earnings estimates compiled by S&P Capital IQ averaged $0.78 per share on the same basis. GAAP EPS of $0.82 for Q2 were 9.3% higher than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 66.8%, 50 basis points better than the prior-year quarter. Operating margin was 10.9%, 540 basis points worse than the prior-year quarter. Net margin was 10.6%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $254.9 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $1.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 279 members out of 339 rating the stock outperform, and 60 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Vistaprint a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vistaprint is hold, with an average price target of $37.44.
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