CafePress Falls Most Since IPO After Lowering Forecast
Stock Chart for CafePress Inc (PRSS)
CafePress Inc. (PRSS), which lets people customize t-shirts and buttons for political campaigns, fell the most since its initial offering after projecting a quarterly profit that trailed analysts’ estimates, citing anticipated voter apathy in upcoming elections.
CafePress, which enables customers to go online to print slogans and other messages on products such as water bottles, posters and stickers, expects “sluggishness” in political sales in the second half of the year, Bob Marino, chief executive officer of the Louisville, Kentucky-based company, said on an analyst conference call yesterday.
“Due to prevailing voter sentiment, people are simply not energized by political gear and that is impacting not only what we anticipated for the presidential election but for the politics category as a whole,” Marino said.
Adjusted earnings per share for the third quarter will be 5 cents to 7 cents, the company said yesterday in a statement. Analysts projected 10 cents, the average of estimates compiled by Bloomberg.
The second-quarter net loss totaled $260,000, or 2 cents a share, compared with a loss of $129,000, or 1 cent, a year earlier, CafePress said yesterday.
“Though they posted a disappointing quarter and guidance, the stock is being overly punished at these levels,” Aaron Kessler, a Raymond James & Associates analyst, said in a telephone interview today. “Consumer factors like lower political spending and European weakness impacted sales this quarter.”
Kessler recommends buying the shares.
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