Ennis Shares Fall 9% as Margin Pressure Weighs on Results

Overview

• Ennis, which posted quarterly and annual results Monday, saw its stock drop about 9% to $19.63 after investors sold on margin concerns.
• Quarterly revenue rose 4% to $96.4 million with EPS steady at $0.35, as gross margin slipped to 29.2% from 29.5% a year ago and fell from 31.9% in the prior quarter.
• For the full year, revenue edged down 0.6% to $392.4 million while gross margin improved to 30.7%, with net earnings of $42.6 million and EPS of $1.66.
• Quarterly EBITDA came in at $16.3 million, or 17.0% of sales, down from last year, whereas full‑year EBITDA improved to $75.7 million, or 19.3% of sales.
• A debt‑free balance sheet, $14.5 million in buybacks, and acquisitions that added $8.8 million to the quarter helped offset soft volumes as Ennis cut inventory and lined up new paper suppliers after a mill closure.