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Vistaprint Q2 Results Top Estimates, Boosts 2013 EPS Outlook

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1/31/2013 8:04 PM ET

on-line marketing products and services company Vistaprint N.V. (VPRT: Quote) reported Thursday a profit for the second quarter that declined 28 percent from last year, reflecting lower operating margins amid higher expenses and increased tax provisions. However, both adjusted earnings per share and quarterly revenues topped analysts' expectations.

The company also provided revenue guidance for the third quarter, below Street view, and raised earnings forecast for the full-year 2013, while trimming annual revenue outlook.

"Our second quarter results were solid. We delivered good results for our consumer and holiday business around the world. We continued to execute well in North America," President and CEO Robert Keane said in a statement.

The Venlo, the Netherlands-based company reported net income of $22.96 million or $0.66 per share for the second quarter, down from $31.70 million or $0.82 per share in the prior-year quarter.

Excluding primarily share-based compensation expense, adjusted net income for the quarter was $35.91 million or $1.02 per share, compared to $37.87 million or $0.97 per share in the year-ago quarter.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.75 per share for the second quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 16 percent to $348.31 million from $299.86 million in the same quarter last year, and topped eleven Wall Street analysts' consensus estimate of $341.53 million by a whisker.

Excluding impact of currency exchange rate fluctuations, revenues rose 17 percent. Revenue grew 14 percent year-over-year excluding the impact of currency exchange rate fluctuations and revenue from acquisitions of Albumprinter and Webs, which had a combined revenue of $25.6 million.

North America revenues grew 20 percent to $167.51 million, Europe revenues increased 11 percent to $159.34 million, and revenues for most of world improved 26 percent to $21.46 from last year.

Gross margin for the second quarter improved 40 basis points to 67.2 percent, while operating margin contracted 140 basis points to 9,5 percent from last year.

Income tax provision was $8.19 million, compared to $2.87 million in the year-ago quarter.

Looking ahead to third quarter, Vistaprint expects quarterly revenues between about $275 million and $290 million, while analysts currently expect $293.56 million.

For fiscal 2013, the company projects adjusted earnings in a range of about $1.79 to $1.99 per share, up from the prior forecast of $1.62 to $1.92 per share. However, the company lowered its revenue guidance to a range of about $1.145 billion to $1.175 billion from the previous outlook between $1.165 billion and $1.215 billion.

Street is currently looking for full-year 2013 earnings of $1.74 per share on annual revenues of $1.18 billion.

The company also expects to make capital expenditures of about $85 million to $95 million in fiscal 2013, compared to the earlier projection of $80 million to $95 million.

"Looking ahead to the second half of the fiscal year, we expect to continue to benefit from solid execution in North America and strong manufacturing results around the world. We continue to believe that our European marketing execution turn-around will take time, and our revenue weakness there will persist through at least the remainder of fiscal 2013, CFO Ernst Teunissen noted.

VPRT closed Thursday's regular trading session at $35.85, up $0.33 or 0.93% on a volume of 0.68 million shares. However, the stock lost $0.60 or 1.67% in after-hours trade.

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by RTT Staff Writer

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