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So what: Management expects revenue in the second quarter of $68 million to $72 million, about 22% greater than the consensus forecast of $57.6 million. For 2011, management expects revenue of $468 million to $478 million, about 19% greater than the consensus forecast of $396 million.
Now what: The outlook also indicated management expects lower profits than analysts had forecast. For the second quarter, Shutterfly expects EPS of a loss of $0.35 to $0.46, compared to the consensus of a loss of $0.22. For 2011, Shutterfly expects EPS of $0.39 to $0.44, compared to the consensus of $0.78. Management guidance points to an EPS decline in 2011 from 2010's $0.59, making it hard to justify the stock's P/E ratio of 132 times.
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