Why Vistaprint Tanked

Updated

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.

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At the time thisarticle 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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