Cimpress plc CMPR announced that it has commenced the offering of senior notes worth $525 million in aggregate principal amount. The senior notes due in 2032 will be offered through private placement.
It is worth mentioning here that the company’s shares lost 4.1% yesterday, ending the trading session at $80.23.
Inside the Headlines
With the completion of the notes offering, CMPR plans to amend its existing credit agreement by extending its revolving credit facility’s maturity and adjusting the interest rate relevant to any loans under this facility.
The company will use the net proceeds along with the cash on hand to fund the full redemption of its existing 7.0% senior notes due 2026. The net proceeds will also be used to pay all related fees and expenses associated with the offering and the amendment of the credit agreement.
We believe that the offering of senior notes will increase CMPR’s debts and, in turn, might inflate its financial obligations and hurt profitability. However, prepaying part of certain indebtedness will offer some relief. Exiting fourth-quarter fiscal 2024 (ended June 30, 2024), its long-term debt remained high at $1.6 billion.
CMPR’s Zacks Rank & Price Performance
Cimpress, with a $2 billion market capitalization, currently carries a Zacks Rank #3 (Hold). Strength across the Vista, National Pen and Upload & Print segments is supporting growth. The Vista unit is benefiting from new product introductions while growth in the e-commerce channel is driving the National Pen segment. Increasing order rate for products is aiding the Upload & Print unit. However, high debt levels are likely to weigh on the company in the quarters ahead.
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CMPR’s shares have gained 28.2% in the past year compared with the industry’s 16.4% growth.
The Zacks Consensus Estimate for fiscal 2025 (ended June 2025) earnings per share has increased 3.8% to $4.40 in the past 60 days.
Stocks to Consider
Some better-ranked companies are discussed below.
H&R Block, Inc. HRB currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HRB delivered a trailing four-quarter average earnings surprise of 10.8%. In the past 60 days, the Zacks Consensus Estimate for H&R Block’s fiscal 2025 earnings has increased 9.7%.
Monro, Inc. MNRO presently carries a Zacks Rank #2 (Buy). In the past 60 days, the Zacks Consensus Estimate for MNRO’s fiscal 2025 earnings has increased 28%.
Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 earnings has increased 1.1%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
