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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Vistaprint. Motley Fool newsletter services have recommended buying shares of Vistaprint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.