) declared fourth quarter 2012 adjusted earnings (including
stock-based compensation expense of 23 cents per share) of 17 cents
per share, comprehensively beating the Zacks Consensus Estimate of
5 cents loss per share.
The better-than-expected results were driven by double-digit
growth in the top line. However, adjusted earnings fell from the
year-ago level of 32 cents. On a GAAP basis, earnings per share
(including stock based compensation expense) were 10 cents versus
32 cents in the comparable quarter of last year.
In full-fiscal 2012, adjusted earnings were $1.30 per share
versus $1.83 per share in fiscal 2010. On a GAAP basis, earnings
were $1.95 as against $2.30 in the prior year.
In the fourth quarter, the company registered 19.9%
year-over-year growth in revenues to $250.4 million, including the
$15.4 million contribution from Albumprinter & Webs. Revenues
lagged the Zacks Consensus Estimate of $258.0 million. In
full-fiscal 2012, revenues were $1,020.3 million, up 25.0% year
Geographically, Vistaprint derived 57%, 37% and 6% of revenues
from the North America, Europe and Asia-Pacific markets,
Behind the Headline Numbers
In the fourth quarter, gross margin rose 70 basis points (bps)
from the year-ago quarter to 64.6%. Operating income came in at
$5.1 million, reflecting a downside of 70% from the prior-year
quarter. Operating margin plunged 610 bps from the prior-year
quarter to 2.0%.
Total order volume increased roughly 14% year over year to 6.4
million in the fourth quarter. Vistaprint added 2.2 million new
customers in the quarter.
The company exited the quarter with $62.2 million in cash, cash
equivalents and short-term marketable securities. Total assets of
the company were $592.4 million while total liabilities amounted to
During the quarter under review, the company bought back
2,990,376 of its shares for $100.1 million.
For full-year 2013, the company expects adjusted earnings per
share guidance (excluding stock-based compensation expense of 97
cents) in the range of $1.62-$1.92 per share. On a GAAP basis,
earnings per share are expected in the range of 40-70 cents.
Revenue is expected in the range of $1,175.0-$1,225.0 million.
For the first quarter of 2013, revenues are expected in the
range of $250-$260 million.
We remain optimistic on Vistaprint's long-term prospects and a
deeper focus on inorganic growth as well as international
expansion. The company remains all set to expand its Asian
presence. Management expects to gain $2 billion revenue by 2016.
Additionally, the company has a share repurchase program in place
to boost its full-year earnings.
However, 2013 could prove to be a challenging year for
Vistaprint as there are a few planned investments, which will weigh
on its bottom line. Acquisitions will also be dilutive to fiscal
2013 earnings. Moreover, increasing headwinds in currency
translation remains a concern given Vistaprint's huge exposure to
the European region.
Vistaprint, which competes with
Sykes Enterprises Inc.
TeleTech Holdings Inc.
), currently retains a Zacks #1 Rank, which translates into a
short-term Strong Buy rating. We are maintaining our long-term
Outperform recommendation on the stock.
SYKES ENTRP INC (SYKE): Free Stock Analysis
TELETECH HLDGS (TTEC): Free Stock Analysis
VISTAPRINT NV (VPRT): Free Stock Analysis
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