Cricut Inc. Up 0.47% To $8.50 After Earnings Miss

Wednesday, November 9, 2022 - Cricut Inc. (CRCT) reported downside earnings and upside revenues.

Cricut Inc.'s earnings came in at an EPS of $0.06 per share, 14% lower than estimates for an EPS of $0.07 per share. The firm's earnings are down 54% since reporting $0.13 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Cricut Inc. revenue came in at a consensus of $167.6 million. Third-Quarter revenues surpassed estimates for $177 million by $9.4 million (6%). The company achieved negative 32% growth year-over-year compared to the firm's revenue of $260.1 million from the year-ago quarter. The lower earnings growth relative to revenue signals Cricut Inc. has not been able to improve its profit margin.

The stock is up 0.47% to $8.50 after the report.

Cricut Inc.'s profit margins took a hit as earnings fell at a faster pace than revenues.

The average recommendation from Wall Street analysts was a Sell which may get revised based on this new data.

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 46. Meanwhile, the average Wall Street analyst rated the stock a 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.