Cricut, Inc. (NASDAQ:CRCT) Declares $0.10 Dividend

Key Points

• Cricut declared a $0.10 per-share dividend to shareholders of record on July 7, payable on July 21, and the announcement cites a reported yield of 474.0%.
• The dividend's sustainability is questionable: Cricut's current payout ratio is 87.0%, and analysts forecast next-year EPS of $0.18, implying a potential payout ratio of 111.1% on a $0.20 annualized dividend.
• In the latest quarter Cricut posted $0.10 EPS (beating consensus $0.05) with revenue of $159.47 million (below estimates), and the company trades with a market cap of about $971 million and a 12.01 P/E.

Cricut, Inc. (NASDAQ:CRCT - Get Free Report) declared a dividend on Tuesday, May 5th. Shareholders of record on Tuesday, July 7th will be paid a dividend of 0.10 per share on Tuesday, July 21st. This represents a yield of 474.0%. The ex-dividend date of this dividend is Tuesday, July 7th.

Cricut has a dividend payout ratio of 87.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Research analysts expect Cricut to earn $0.18 per share next year, which means the company may not be able to cover its $0.20 annual dividend with an expected future payout ratio of 111.1%.

Cricut Price Performance

NASDAQ:CRCT opened at $4.59 on Wednesday. The firm has a market capitalization of $971.02 million, a price-to-earnings ratio of 12.01 and a beta of 0.22. The company's 50-day moving average is $4.21 and its two-hundred day moving average is $4.61. Cricut has a 1-year low of $3.73 and a 1-year high of $7.33.

Cricut (NASDAQ:CRCT - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.05. The business had revenue of $159.47 million during the quarter, compared to the consensus estimate of $164.33 million. Cricut had a net margin of 10.82% and a return on equity of 20.44%. As a group, equities analysts anticipate that Cricut will post 0.14 earnings per share for the current fiscal year.

About Cricut

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.

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