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: After Shutterfly (Nasdaq: SFLY) reported first-quarter earnings yesterday, shares of the shutterbug flew higher by as much as 10% this morning before coming back down near breakeven.

So what: Revenue in the quarter soared by 60% to $91.3 million, but it wasn't enough to generate a profit. The company's GAAP net loss widened to $10 million, or $0.29 per share. The initial pop may have happened because this bottom line was better than expected, as the Street was expecting Shutterfly to lose $0.34 per share.

Now what: A couple of months ago, Shutterfly offered to buy bankrupt Eastman Kodak's online photo business, and it expects the deal to close this week. Next quarter, the company expects revenue between $90 million and $92 million, although costs related to the Kodak deal will hurt the bottom line. Second-quarter GAAP net loss is expected to range from $0.33 to $0.37 per share.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy.
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