Cricut (NASDAQ:CRCT) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Cricut (NASDAQ:CRCT) announced its quarterly earnings data on Tuesday. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.05, FiscalAI reports. Cricut had a return on equity of 20.44% and a net margin of 10.82%.The business had revenue of $159.47 million during the quarter, compared to analyst estimates of $164.33 million.

Here are the key takeaways from Cricut’s conference call:

• Platform revenue grew nearly 6% YoY to $84.8M, paid subscribers rose by ~104k to ~3.08M and ARPU increased ~4.8% to $55.65, indicating improved platform monetization.
• Products revenue declined ~9.6% YoY (total revenue down ~2%) and product gross margin dropped to 23.1% from 32.7% due to inventory write-downs, lower ASPs, tariffs and promotions; management expects no total-company revenue growth in Q2 and sees a tougher first half.
• Management reported year-over-year growth in global machine sell-out and launched new hardware (Cricut Joy 2, Explore 5, EasyPress SE) plus a new DTF service with early encouraging metrics (?80% of orders from subscribers, ~33% repeat), supporting future engagement and accessory/material monetization.
• The company remains profitable and cash-positive with $256M cash, no debt, continued share repurchases (Q1 buyback $12.2M; $29.1M remaining) and a recurring semiannual dividend of $0.10 per share, signaling shareholder-friendly capital allocation.

Cricut Trading Up 1.4%

Shares of CRCT traded up $0.06 during mid-day trading on Tuesday, reaching $4.22. The company’s stock had a trading volume of 586,757 shares, compared to its average volume of 424,862. The stock has a market cap of $893.71 million, a PE ratio of 11.72 and a beta of 0.22. Cricut has a 52 week low of $3.73 and a 52 week high of $7.33. The company’s fifty day moving average price is $4.21 and its two-hundred day moving average price is $4.61.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on CRCT shares. Weiss Ratings raised Cricut from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, March 5th. UBS Group reaffirmed a “cautious” rating on shares of Cricut in a report on Wednesday, March 4th. Barclays reiterated an “underweight” rating and issued a $4.00 target price on shares of Cricut in a research note on Wednesday, March 4th. Finally, The Goldman Sachs Group dropped their price target on shares of Cricut from $3.50 to $3.00 and set a “sell” rating on the stock in a research note on Wednesday, January 14th. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Strong Sell” and an average target price of $3.50.

Insider Buying and Selling at Cricut

In other Cricut news, CEO Arora Ashish sold 13,458 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $4.25, for a total value of $57,196.50. Following the completion of the sale, the chief executive officer owned 3,724,995 shares in the company, valued at approximately $15,831,228.75. This trade represents a 0.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders have sold 193,458 shares of company stock worth $858,197 in the last ninety days. Corporate insiders own 18.02% of the company’s stock.

Institutional Investors Weigh In On Cricut

Several hedge funds have recently made changes to their positions in the company. First Trust Advisors LP increased its stake in shares of Cricut by 1.3% during the second quarter. First Trust Advisors LP now owns 154,368 shares of the company’s stock valued at $1,045,000 after purchasing an additional 1,977 shares in the last quarter. Deutsche Bank AG increased its holdings in shares of Cricut by 6.0% during the fourth quarter. Deutsche Bank AG now owns 41,949 shares of the company’s stock valued at $208,000 after acquiring an additional 2,374 shares in the last quarter. Osaic Holdings Inc. raised its position in shares of Cricut by 255.9% in the 2nd quarter. Osaic Holdings Inc. now owns 3,644 shares of the company’s stock worth $25,000 after purchasing an additional 2,620 shares during the last quarter. Legal & General Group Plc grew its position in Cricut by 6.0% during the 3rd quarter. Legal & General Group Plc now owns 62,812 shares of the company’s stock valued at $395,000 after purchasing an additional 3,566 shares during the last quarter. Finally, Corient Private Wealth LLC increased its stake in Cricut by 34.6% during the 4th quarter. Corient Private Wealth LLC now owns 16,917 shares of the company’s stock valued at $84,000 after purchasing an additional 4,349 shares in the last quarter. 19.60% of the stock is currently owned by institutional investors.

Cricut Company Profile

Cricut, Inc (NASDAQ: CRCT) is a U.S.-based technology company specializing in personal and small-business crafting solutions. The company designs and markets a family of cutting machines that leverage computer-aided design to precisely cut a wide range of materials, including paper, vinyl, fabric and leather. Complementing its hardware offerings, Cricut provides proprietary software and mobile applications that enable users to create custom artwork, import graphics and access a vast library of pre-designed projects and fonts through a subscription service.

Founded as a division of Provo Craft & Novelty in 2005, Cricut emerged as an independent public company in March 2021.