Why Cimpress Stock Broke Down on Thursday
Shares of Cimpress (NASDAQ: CMPR) had a bad day on Thursday. The company behind print-on-demand services such as VistaPrint, Printi, and BuildASign reported mixed results on Wednesday evening. The stock opened Thursday's trading 23.8% lower, though it recovered to a total drop of 9.3% by the end of the day.
For the first quarter of fiscal year 2025, your average analyst expected earnings of approximately $0.29 per share on revenue near $799 million. Cimpress missed the bottom-line target with a net loss of $0.50 per share, though sales rose 6% year over year to $805 million.
The company saw rising sales across all five of its reportable business groups, but operating profits fell in the Vista and PrintBrothers divisions. Further down the income statement, accelerated interest payments on refinanced debt resulted in deeply negative earnings. Jumping to the cash-flow statement, free cash flows shrank due to unfavorable year-over-year comparisons of product inventory levels. The refinancing charges also played a role here.
Source Fool.com
