VistaPrint (VPRT) is scheduled to report their fiscal first quarter 2009 results after the market closes on Tuesday, October 28. Based on our analysis, we at eChristianInvesting are expecting VPRT to report better than expected top-line results that beat Wall Street’s consensus expectations.
We are forecasting revenues of $116.0 million and EPS of $.28. This would represent a 46% increase in revenues from last year’s $79.5 million in the same period. The current analyst consensus calls for revenues of $114.4 million and $.28 EPS. On July 28, the company gave 3rd quarter guidance for revenue of $112 – 116 million and EPS of $.25 - .28.
While we believe that VPRT will deliver a decent quarter, it’s expected that they will join the long list of companies that have reduced their guidance forecasts. Current company guidance calls for full-year revenues of $540 – 570 million. That translates into 35 – 42% growth, which seems unrealistic in this current environment.
VistaPrint’s shares have been hammered this year - dropping 46% year to date. However, that tracks relatively close to the overall markets performance as the Nasdaq is down over 41% in the same time period.
Shares are now trading at only 11x consensus 2009 EPS estimates. This is a discount to the relative valuations of their peer group. However, we are expecting analysts to cut estimates following the company’s quarterly earnings report. The shares appear to be fully valued and would expect a further sell-off following the earnings report.
Hold with a $22 price target.