The chart below shows how CMPR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMPR sees a +0.69% change in stock price 10 days leading up to the earnings, and a +2.89% change 10 days following the report. On the earnings day itself, the stock moves by -0.86%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Resilience Amid Challenges: Consolidated revenue grew 2% on both a reported basis and organic constant currency basis, indicating resilience in overall sales despite challenges in specific segments.
Projected Adjusted EBITDA Growth: Adjusted EBITDA for the second half of the fiscal year is projected to be at least $220 million, reflecting confidence in recovery and operational improvements.
Positive Revenue Outlook: The company expects revenue in constant currencies to grow at least 4% in the second half of the fiscal year, signaling a positive outlook for future performance.
Customer Growth Impact: Vista's highest value customers are experiencing strong growth, contributing to the overall positive trajectory of the business despite some segment challenges.
Performance Improvement Initiatives: The company has initiated multiple actions to improve performance and reduce operating expenses, which are expected to positively impact profitability moving forward.
Negative
EBITDA Decline Analysis: Adjusted EBITDA declined by over $34 million year-over-year, with approximately $18 million attributed to weaker sales in the U.S. market, particularly in consumer-related holiday products and business cards.
Consumer Revenue Decline: Vista's consumer revenue declined by 3% year-over-year, primarily due to a Canadian postal strike and a less favorable environment for holiday cards, which are expected to continue to face pressure in the future.
Rising Advertising Costs: The cost of performance advertising increased nearly 50% in the U.S., leading to higher customer acquisition costs and reduced effectiveness in reaching new customers, particularly in the business cards and holiday cards categories.
Revenue Growth Slowdown: Consolidated revenue growth was only 2% on both a reported and organic constant currency basis, indicating a significant slowdown compared to previous growth rates and raising concerns about future performance.
Net Leverage Expectations: The company now expects to exit the fiscal year with net leverage of approximately 3.0 times trailing 12-month EBITDA, slightly delayed from prior expectations, which may limit financial flexibility and growth initiatives.
Earnings call transcript: Cimpress Q2 2025 results miss expectations
CMPR.O
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