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Vista Print (NASDAQ:VPRT) is scheduled to report their fiscal second quarter 2009 results after the market closes on Tuesday, January 27. Based on our analysis, we at EarningsPreview.com are expecting VPRT to report better than expected results that beat Wall Street's expectations.

Analyst Expectations

We are forecasting revenues of $129.1 million and EPS of $.40. This would represent a 23% increase in revenues from last year's $105.0 million in the same period. The current analyst consensus calls for revenues of $127.8 million and $.39 EPS. On the last earnings call, the company gave quarterly guidance for revenues of $122 – 134 million and EPS of $.36 - .41. We are expecting Vista Print to report solid quarterly results after management commented in December that results were performing well against their guidance estimates. This would indicate impressive results in the face of extremely difficult economic conditions and falling consumer demand. More importantly than the fiscal second quarter results will be if the company can maintain full year guidance or not. Our guess is that they will reduce fiscal year 2009 guidance in anticipation of further weakness in the economic environment along with the appreciating U.S. dollar.

Share Performance

Vista Print's shares have fallen 12% since the beginning of the year. And in 2008, the shares fell an incredible 57% badly underperforming the Dow Jones index's 34% decline.

Valuation

Shares are now trading at 10x consensus FY2010 EPS estimates. This is a discount to the relative valuations of their peer group. If the company is able to maintain their full year guidance, then the shares should get a boost since they are already trading at very attractive levels.

Recommendation: Buy with a $20 price target.

Disclosure: no positions

Source: VistaPrint: Earnings Preview Is Better Than Expected