Overview

* Ennis Q2 revenue declines 0.3% yr/yr to $98.7 million

* EPS for Q2 rises to $0.51, net earnings for the quarter were $13.2 million

* Recent acquisitions and legal settlement positively impact financial results

Outlook

* Company expects cash flow to strengthen in coming quarters

* Ennis anticipates lower purchasing needs due to current inventory levels

* Company highlights strong balance sheet with no debt

Result Drivers

* ACQUISITIONS - Recent acquisitions, including Northeastern Envelope Company, added $5.5 mln in quarterly revenue

* LEGAL SETTLEMENT - $5.7 mln collected from a legal settlement positively impacted quarterly earnings

* GROSS MARGIN - Gross margin improved to 30.5% from 30.1% year-ago, despite a decline from the prior quarter

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $98.70 $99 mln

Revenue mln (1

Analyst)

Q2 EPS Beat $0.51 $0.38 (1

Analyst)

Q2 Net $13.20

Earnings mln

Q2 Gross 30.5%

Margin

Q2 $0.25

Dividend

Analyst Coverage

* The one available analyst rating on the shares is "strong buy"

* The average consensus recommendation for the commercial printing services peer group is "buy."

* Wall Street's median 12-month price target for Ennis Inc ( EBF ) is $23.00, about 21.1% above its September 19 closing price of $18.14

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)