Why Vistaprint Tanked

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vistaprint (NAS: VPRT) have tanked today by as much as 11% after the business services provider reported third-quarter results.

So what: The company beat expectations on both revenue and profit, with sales of $257.6 million and non-GAAP earnings per share of $0.29. On a GAAP basis, net income plunged by 99% from a year ago to just $274 million.


Now what: CEO Robert Keane said Vistaprint continues to chug along with its five-year objectives that it detailed nine months ago. Next quarter will finish out the year, and Vistaprint expects to post a GAAP profit for fiscal 2012, although next quarter may see a net loss due to dilution of acquisitions and the timing of various operating expenses. That potential loss forecast seems like it's what's rattling investors today.

Interested in more info on Vistaprint? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Vistaprint. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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