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NEW YORK (TheStreet) -- Shares of VistaPrint Limited (VPRT) are down -17.91% to $43.85 in after-hours trade on Tuesday following the release of the company's 2014 third quarter earnings.

VistaPrint's revenue for the 2014 third quarter was $286.2 million, a decrease of 1% from the same period the previous year of $287.7 million.

The company, which provides online marketing products, reported GAAP net income was $1.4 million, or 4 cents per diluted share, a 77% decrease from the $5.9 million, or 17 cents per diluted share for the 2013 third quarter.

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Non-GAAP net income for the third quarter was $8.3 million, or 24 cents per diluted share, versus $16.9 million, or 48 cents per diluted share from the same quarter 2013.

TheStreet Ratings team rates VISTAPRINT NV as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate VISTAPRINT NV (VPRT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 78.0% when compared to the same quarter one year prior, rising from $22.96 million to $40.88 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.7%. Since the same quarter one year prior, revenues slightly increased by 6.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet Software & Services industry and the overall market, VISTAPRINT NV's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for VISTAPRINT NV is currently very high, coming in at 71.97%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, VPRT's net profit margin of 11.02% significantly trails the industry average.
  • Net operating cash flow has slightly increased to $95.03 million or 7.33% when compared to the same quarter last year. Despite an increase in cash flow, VISTAPRINT NV's cash flow growth rate is still lower than the industry average growth rate of 22.21%.
  • You can view the full analysis from the report here: VPRT Ratings Report

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