What happened

Shares of Shutterfly, Inc. (NASDAQ:SFLY), a leading digital retailer and manufacturer of high-quality personalized products and services in photo books, gifts, cards, and stationery, are jumping 15% as of 11:45 a.m. EDT Wednesday after the company posted a better-than-expected first quarter.

So what

The digital photo company generated revenue of $199.7 million during the first quarter, a 4% year-over-year increase, topping analysts' estimates of $191.8 million. On the bottom line, its adjusted earnings per share checked in at $0.73, which was an improvement compared to the prior year and better than analysts' calling for a loss of $0.95 per share.

"The first quarter of 2018 was a good start to the year for Shutterfly, led by healthy Shutterfly organic growth and overperformance in Shutterfly Business Solutions," said President and Chief Executive Officer Christopher North, in a press release. "We showed a significant improvement in profitability over the first quarter of 2017, thanks to organic Shutterfly brand growth of 10% and the benefits of last year's platform consolidation."

A wedding photo book open showing two pictures of the bride and groom.

Image source: Getty Images.

Now what

While growth will continue to be a focus for Shutterfly, the company will switch gears a little bit as the Lifetouch acquisition is now closed and management can fully focus on generating cost and revenue synergies. It's a growth story investors are buying into with Shutterfly's stock price up 87% year to date, and if the company continues to make strategic progress in mobile, as well as pricing and promotion, 2018 should be a strong year for the company even if it gives back some of its stock price gains.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.