The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shutterfly beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Margins shrank across the board.
Shutterfly tallied revenue of $263.8 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $260.9 million. Sales were 59% higher than the prior-year quarter's $166.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.97. The four earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. GAAP EPS of $0.97 for Q4 were 11% lower than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 58.9%, 270 basis points worse than the prior-year quarter. Operating margin was 27.5%, 290 basis points worse than the prior-year quarter. Net margin was 13.4%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $90.4 million. On the bottom line, the average EPS estimate is -$0.27.
Next year's average estimate for revenue is $584.7 million. The average EPS estimate is $0.70.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 150 members out of 272 rating the stock outperform, and 122 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Shutterfly a green thumbs-up, and 43 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 $39.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.