The 10-second takeaway
For the quarter ended June 30 (Q2), Shutterfly beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share improved.
Gross margins increased, operating margins grew, net margins shrank.
Shutterfly logged revenue of $99.0 million. The 10 analysts polled by S&P Capital IQ expected a top line of $91.6 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $75.8 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 -$0.27. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.35 per share. GAAP EPS were -$0.27 for Q2 compared to -$0.11 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 48.8%, 140 basis points better than the prior-year quarter. Operating margin was -18.0%, 920 basis points better than the prior-year quarter. Net margin was -9.6%, 480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $91.6 million. On the bottom line, the average EPS estimate is -$0.35.
Next year's average estimate for revenue is $583.5 million. The average EPS estimate is $0.17.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 155 members out of 273 rating the stock outperform, and 118 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Shutterfly a green thumbs-up, and 45 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 $36.20.
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