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EBF Ennis News Story

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Printed products supplier Ennis' Q2 revenue remains flat

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

MetricBeat/MissActualConsensus Estimate
Q2 RevenueMiss$98.70 mln$99 mln (1 Analyst)
Q2 EPSBeat$0.51$0.38 (1 Analyst)
Q2 Net Earnings$13.20 mln
Q2 Gross Margin30.5%
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.)

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