The 10-second takeaway
For the quarter ended March 31 (Q1), Shutterfly beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share grew.
Gross margins dropped, operating margins expanded, net margins increased.
Shutterfly notched revenue of $91.3 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $84.4 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $57.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.29. The three earnings estimates compiled by S&P Capital IQ predicted -$0.33 per share. GAAP EPS were -$0.29 for Q1 compared to -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 320 basis points worse than the prior-year quarter. Operating margin was -20.9%, 180 basis points better than the prior-year quarter. Net margin was -11.0%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $88.2 million. On the bottom line, the average EPS estimate is -$0.29.
Next year's average estimate for revenue is $556.2 million. The average EPS estimate is $0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 145 members out of 264 rating the stock outperform, and 119 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Shutterfly a green thumbs-up, and 37 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 $31.44.
If you're invested in retailers like Shutterfly, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Shutterfly to My Watchlist.
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.