Ennis Q1 EPS $0.39, sales beat estimates on acquisitions
Ennis reported Q1 FY27 earnings of $0.39 per share, matching analyst estimates, while sales rose 1.46% to $98.615 million, beating the $98.200 million consensus. Operating cash flow surged to $21.2 million, boosting cash balances to $49.1 million.
*this image is generated using AI for illustrative purposes only.
Ennis reported financial results for the quarter ended May 31, 2026, with earnings per share meeting analyst estimates and sales surpassing expectations. The company posted quarterly earnings of $0.39 per share, a 2.63% increase from $0.38 in the prior-year quarter, matching the consensus estimate. Sales rose 1.46% to $98.615 million, beating the analyst consensus estimate of $98.200 million by 0.42%. Acquisitions completed during fiscal year 2026 contributed approximately $4.5 million in revenue and positively impacted diluted earnings per share by $0.02.
Net earnings increased to $9.9 million from $9.8 million in the same period last year. Operating cash flow increased significantly to $21.2 million from $8.0 million, driving cash balances to $49.1 million from $34.6 million at February 28, 2026. The company maintains a strong financial position with no debt and ample liquidity. Management noted the successful transition to alternative supply sources for carbonless paper following the closure of a domestic producer, without anticipating disruption to customer service.
Gross profit margin improved to 31.5% from 31.1% in the comparative quarter last year and 29.2% in the fourth quarter of fiscal 2026. EBITDA increased to $18.0 million, or 18.2% of sales, compared to $17.7 million, or 18.2% of sales, in the same quarter last year.
Financial Performance
| Metric | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Revenues | $98.615 million | $97.197 million |
| Net earnings | $9.9 million | $9.8 million |
| Diluted EPS | $0.39 | $0.38 |
| Gross profit margin | 31.5% | 31.1% |
| Operating cash flow | $21.2 million | $8.0 million |
Dividend Declaration
On June 19, 2026, the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the company’s common stock. The dividend is payable on August 10, 2026 to shareholders of record on July 10, 2026.
How does Ennis plan to utilize its increased cash balance and strong liquidity position in the coming quarters?
What is the company's strategy for future acquisitions following the $4.5 million revenue contribution from recent deals?
Will the improved gross profit margin be sustainable given the transition to alternative supply sources for carbonless paper?
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