Ennis (NYSE:EBF) Posts Earnings Results, Misses Expectations By $0.02 EPS

Ennis (NYSE:EBF) released its quarterly earnings data on Monday. The industrial products company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.02), Zacks reports. The company had revenue of $102.01 million during the quarter, compared to analyst estimates of $99.85 million. Ennis had a net margin of 9.81% and a return on equity of 12.64%.

Ennis Stock Performance

EBF stock opened at $22.09 on Wednesday. The company’s 50-day simple moving average is $21.65 and its 200 day simple moving average is $21.17. Ennis has a 52 week low of $16.30 and a 52 week high of $22.94. The company has a market capitalization of $559.00 million, a PE ratio of 14.44 and a beta of 0.27.

Ennis Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Friday, October 9th will be given a $0.2625 dividend. The ex-dividend date of this dividend is Friday, October 9th. This is a boost from Ennis’s previous quarterly dividend of $0.25. This represents a $1.05 dividend on an annualized basis and a dividend yield of 4.8%. Ennis’s dividend payout ratio (DPR) is presently 59.88%.

Key Headlines Impacting Ennis

Here are the key news stories impacting Ennis this week:

• Positive Sentiment: Revenue increased 3.3% year over year to approximately $102.0 million, exceeding analysts’ expectations of $99.85 million. The company said its underlying operations held up better than the headline profit decline suggests. Ennis revenue rises 3.3% to $102 million
• Positive Sentiment: Ennis raised its quarterly dividend 5%, from $0.25 to $0.2625 per share. The dividend implies an annualized yield of roughly 4.9%, reinforcing the company’s appeal to income-oriented investors. Ennis quarterly results and dividend increase
• Neutral Sentiment: Management is pursuing all available remedies in litigation involving the B&D Litho lease. Legal items affected comparisons, making it harder to assess recurring profitability, although they may obscure the strength of the core business. Ennis Q2 profit and litigation update
• Negative Sentiment: Diluted earnings per share fell to $0.37 from $0.51 a year earlier and missed the consensus estimate of $0.39. Higher paper costs also pressured margins, while profit and EBITDA declined. Ennis earnings miss

Analysts Set New Price Targets

A number of brokerages have weighed in on EBF. Weiss Ratings downgraded Ennis from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Wall Street Zen raised Ennis from a “hold” rating to a “buy” rating in a report on Sunday, August 23rd. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has an average rating of “Hold”.

About Ennis

Ennis, Inc (NYSE: EBF) is a manufacturer and supplier of printed business products headquartered in Midlothian, Texas. The company primarily serves independent distributors, print resellers and other business customers rather than selling directly to consumers.

Its product portfolio includes business forms, envelopes, labels, tags, checks, presentation folders, promotional products, apparel and other customized printed materials. Ennis also provides products used in commercial printing, packaging and workplace communications, with offerings manufactured through a network of production facilities and sold under various company brands.

Founded in 1909, Ennis has expanded over its history through organic growth and acquisitions in the printing and related product industries.