Cricut Inc Cl A Up 5.35% To $10.63 After Earnings Beat

Wednesday, August 9, 2023 - Cricut Inc Cl A (CRCT) reported upside earnings and revenues today.

Cricut Inc Cl A's earnings came in at an EPS of $0.07 per share, 17.00% higher than estimates for an EPS of $0.06 per share. The firm's earnings are up 17% since reporting $0.06 per share in the same period a year ago.

Consensus estimates for Cricut Inc Cl A revenue averaged out to $176.5 million, with the business managing to beat those expectations with reported second-quarter revenue of $177.8 million. The $1.3 million (1%) positive revenue surprise led to negative 3% growth year-over-year as the firm reported revenue of $183.8 million in its year-ago quarter. The higher earnings growth compared to revenue points to Cricut Inc Cl A improving its profit margin.

The stock is up 5.35% to $10.63 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Sell on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 37. Meanwhile, the average Wall Street analyst rated the stock a Strong Sell.

Cricut Inc designs and builds a creativity platform that enables users to turn ideas into professional-looking handmade goods. With its connected machines, design apps and accessories, and materials, the users create everything from personalized birthday cards, mugs, and T-shirts to large-scale interior decorations. It derives revenues from three segments including Connected machines, Subscriptions, and Accessories and materials. It derives maximum revenue from the Accessories and Materials segment through the sales of Cricut EasyPress, hand tools, machine replacement tools and blades, project materials such as vinyl and iron-on, and sales of a la carte digital content purchases, including fonts, images, and projects.