Corrected: Ennis Q3 revenue rises marginally, profit margin improves

Ennis

22/12/2025 11:15

Corrects to say Ennis revenue rose marginally, not beat estimates, in headline

Overview

U.S. business product supplier's Q3 revenue rose 0.4% yr/yr

EPS for Q3 beat the sole analyst estimate

Company completed acquisition of CFC Print & Mail

Outlook

Company expects cash flow to improve in coming periods

Ennis anticipates no supply disruptions from transition to alternative carbonless paper sources

Future share repurchases will be evaluated based on market conditions

Result Drivers

GROSS MARGIN IMPROVEMENT - Ennis attributed the increase in gross profit margin to operational efficiencies and favorable margin profile of recent acquisitions

ACQUISITION CONTRIBUTION - Revenue was positively impacted by the acquisition of CFC Print & Mail, contributing $5.8 mln in the quarter

INVENTORY MANAGEMENT - Co reduced inventory levels in response to the closure of a domestic carbonless paper producer, transitioning to alternative sources without supply disruptions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$100.20 mln
$100.90 mln (1 Analyst)
Q3 EPS
Beat
$0.42
$0.41 (1 Analyst)
Q3 Net Earnings
$10.80 mln
Q3 Gross Margin
31.90%
Q3 Dividend
$0.25


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The one available analyst rating on the shares is "strong buy"

The average consensus recommendation for the commercial printing services peer group is "buy."

Wall Street's median 12-month price target for Ennis Inc is $23.00, about 27.3% above its December 19 closing price of $18.07

Press Release: ID:nBw8bhTl4a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)