The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Shutterfly beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share stayed the same.
Gross margins shrank, operating margins grew, net margins grew.
Shutterfly booked revenue of $98.5 million. The 13 analysts polled by S&P Capital IQ foresaw revenue of $91.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $76.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.29. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.19 per share. GAAP EPS of -$0.29 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.1%, 150 basis points worse than the prior-year quarter. Operating margin was -24.1%, 560 basis points better than the prior-year quarter. Net margin was -10.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $307.9 million. On the bottom line, the average EPS estimate is $1.50.
Next year's average estimate for revenue is $591.1 million. The average EPS estimate is $1.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 157 members out of 278 rating the stock outperform, and 121 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Shutterfly a green thumbs-up, and 42 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shutterfly is outperform, with an average price target of $36.73.
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