Overview
Ennis Q2 revenue declines 0.3% yr/yr to $98.7 million
EPS for Q2 rises to $0.51, net earnings for the quarter were $13.2 million
Recent acquisitions and legal settlement positively impact financial results
Outlook
Company expects cash flow to strengthen in coming quarters
Ennis anticipates lower purchasing needs due to current inventory levels
Company highlights strong balance sheet with no debt
Result Drivers
ACQUISITIONS - Recent acquisitions, including Northeastern Envelope Company, added $5.5 mln in quarterly revenue
LEGAL SETTLEMENT - $5.7 mln collected from a legal settlement positively impacted quarterly earnings
GROSS MARGIN - Gross margin improved to 30.5% from 30.1% year-ago, despite a decline from the prior quarter
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$98.70 mln
$99 mln (1 Analyst)
Q2 EPS
Beat
$0.51
$0.38 (1 Analyst)
Q2 Net Earnings
$13.20 mln
Q2 Gross Margin
30.5%
Q2 Dividend
$0.25
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 21.1% above its September 19 closing price of $18.14
Press Release: ID:nBwbDnmnMa
(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.)