Printed products supplier Ennis' Q2 profit slips on litigation costs

Ennis

21/09/2026 11:12

Overview
U.S. printed business product supplier's Q2 revenue grew 3.3% yr/yr
Q2 EPS declined yr/yr, mainly due to litigation-related items
Company raised quarterly dividend by 5% after strong operating quarter

Outlook
Company did not provide specific financial guidance or outlook for future periods in the press release

Result Drivers
LITIGATION IMPACT - Decrease in EPS was mainly due to prior-year favorable litigation judgment and a current-quarter litigation charge
ACQUISITIONS - Acquisitions completed during the year contributed $2.3 mln in revenue and a $0.01 increase in diluted EPS for the quarter
HIGHER PAPER COSTS - Gross margin declined due to higher carbonless paper costs recognized in cost of sales

Company press release: ID:nBw8wcyfVa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$102.006 mln
$99.85 mln (1 Analyst)
Q2 EPS
Miss
$0.37
$0.39 (1 Analyst)
Q2 Net Earnings
 
$9.39 mln
 
Q2 Adjusted EBITDA
 
$17.24 mln
 
Q2 Gross Margin
 
29.90%
 

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 $24.00, about 12.6% above its September 18 closing price of $21.32
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
     

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(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.)