The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Vistaprint beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins shrank.
Vistaprint logged revenue of $348.3 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $341.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $299.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.02. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.66 for Q2 were 20% lower than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.2%, 40 basis points better than the prior-year quarter. Operating margin was 9.5%, 190 basis points worse than the prior-year quarter. Net margin was 6.6%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $294.0 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $1.74.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 262 members out of 320 rating the stock outperform, and 58 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Vistaprint a green thumbs-up, and 19 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 $32.77.
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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 recommends 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.