Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shutterfly (Nasdaq: SFLY) shares are printing new highs on the ticker tape today, gaining as much as 20%, after the company reported better-than-expected fourth-quarter results last night.

So what: Shutterfly's report was bullish from every angle. Earnings for the quarter came in at $1.09 on revenue of $166.2 million versus Street expectations of $0.95 on revenue of $154.5 million. The company highlighted that a staggering 72% of revenue came from repeat customers on the back of a 21% jump in orders. The company wasn't finished however, raising full-year EPS and revenue guidance for fiscal 2011.

Now what: Today's results simply reinforce Shutterfly's dominance in the photofinishing space. Shutterfly has done a considerably better job retaining customers and getting them to spend more than its competitors. Rivals Eastman Kodak (NYSE: EK), which reported an abysmal quarter last week, and Hewlett-Packard (NYSE: HPQ) simply don't have the product or the motivation to take away any market share from Shutterfly. What bulls need to remember is that Shutterfly's business is highly cyclical. This is a company that makes nearly all of its profits during the fourth-quarter, so its performance during these three months is what really counts. As I see it, there are no superior challengers to Shutterfly's products at the moment, so the bulls have my whole-hearted endorsement to shake it like a Polaroid picture in the meantime.

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Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong.

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