A "Save the Date" card.

Image source: Shutterly.

What happened

Shares of Shutterfly Inc. (NASDAQ:SFLY) were getting clipped Thursday after the personalized photo-and-stationery company issued a weak fourth-quarter earnings report. As of 12:51 p.m. EST, the stock was down 16.1%.

So what

Shutterfly posted disappointing results across the board as the earnings per share fell form $3.57 to $2.63, or 26%, missing estimates at $2.84. Revenue growth, meanwhile, was the slowest it's been since the company's 2006 IPO as net sales increased 2% to $561.2 million, well below estimates at $584.4 million. Since much of the company's business is gifts, the fourth quarter is by far its most important period.

CEO Christopher North noted, "Consumer growth came toward the low end of our guidance," as the company saw sales declines in Tiny Prints, Wedding Paper Divas, MyPublisher, and BorrowLenses Brands.

Now what

Shutterfly's 2017 guidance was also disappointing as it sees earnings per share of just $0.45 to $0.80, well below the analyst consensus of $1.19. Management also expects revenue of $1.135 billion to $1.165 billion, which is short of expectations at $1.27 billion. The company is currently undergoing a restructuring and expects sales growth to accelerate in 2018. However, considering that growth has slowed to a crawl and its valuation remains elevated, it's not surprising to see the stock slide on Thursday.

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