Vistaprint Records Mixed Results – Analyst Blog
Vistaprint N.V. (VPRT) recorded its fourth-quarter 2010 adjusted earnings of $17.3 million or 38 cents per share, which declined 12% year over year but surpassed the Zacks Consensus Estimate of 25 cents. Earnings were at the high end of the guidance range of 35 cents–38 cents.
Vistaprint had earned $19.5 million or 43 cents in the year-ago quarter. On a GAAP basis, earnings decreased 21% to 26 cents during the quarter. Earnings were at the higher end of the guidance range of 24 cents–27 cents issued by the company.
Revenues of $164.3 million in the quarter fell short of the Zacks Consensus Estimate of $169.0 million mainly due to unfavorable currency fluctuation, but upped 22% year over year.
For full fiscal year, Vistaprint’s adjusted earnings per share jumped 18% year over year to $1.98, ahead of the Zacks Consensus Estimate of $1.49 per share while GAAP EPS was $1.49, reflecting a 19% year over year increment. Both adjusted and GAAP earnings were delivered at the high end of the respective management guidance ranges of $1.95 to $1.98 and $1.47 to $1.50 per share.
The company registered a 30% year over year growth in fiscal revenue to $670 million, including the impact of currency exchange rate fluctuations. The revenue missed the guidance range of $675 million to $680 million provided by management and the Zacks Consensus Estimate of $675 million.
Behind the Headline Numbers
In the fourth quarter, gross margin improved 50 basis points (bps) from the year-ago quarter to 63.6%. For full fiscal year, gross margin rose 140 bps to 64.2%. Operating income was $13.9 million in the quarter, reflecting a decline of 8% from the prior-year period. However, full year operating income surged 25% year over year to $76.8 million.
Turning to key metrics, Vistaprint noted 77.8 million website sessions in the quarter, representing a 25% increase from the prior-year quarter. Average daily order volume increased nearly 20% from the prior-year period to 53,000 orders per day. Approximately 1.6 million new customers were acquired by Vistaprint in the quarter. Around 67% of the bookings came from repeat customers, in-line with the year-ago quarter.
Guidance
For the first quarter of 2011, Vistaprint expects earnings to range within 27 cents–32 cents, excluding expected share-based compensation expense and its related tax effect. On a GAAP basis, the company expects earnings in the range of 15 cents to 20 cents per share, based on revenues in the range of $159 million to $164 million. The Zacks Consensus Estimate prior to the earnings release was 33 cents for the first quarter and $172 million of revenues.
For full fiscal year 2011, the company expects earnings to range from $2.09 to $2.24 per share, excluding stock compensation costs. On a GAAP basis earnings are projected to range within $1.65–$1.80 per share, based on revenues in the range of $750 million to $780 million. For the full fiscal year, the Zacks Consensus Estimate prior to the earnings release was $1.83 for earnings and $802 million for revenue.
We think that the ongoing uncertainty in the economy will restrict any significant improvement in its top line. The company faces strong competition in its markets. Moreover, substantial exposure to international markets also makes Vistaprint vulnerable to currency fluctuation risks.
VISTAPRINT NV (VPRT): Free Stock Analysis Report
Zacks Investment Research
July 29, 2010 | Filed Under Analyst Opinions
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