The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Shutterfly beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share stayed the same.
Gross margins shrank, operating margins grew, net margins grew.
Shutterfly booked revenue of $98.5 million. The 13 analysts polled by S&P Capital IQ foresaw revenue of $91.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $76.5 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 11 earnings estimates compiled by S&P Capital IQ averaged -$0.19 per share. GAAP EPS of -$0.29 were the same as 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 44.1%, 150 basis points worse than the prior-year quarter. Operating margin was -24.1%, 560 basis points better than the prior-year quarter. Net margin was -10.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $307.9 million. On the bottom line, the average EPS estimate is $1.50.
Next year's average estimate for revenue is $591.1 million. The average EPS estimate is $1.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 157 members out of 278 rating the stock outperform, and 121 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Shutterfly a green thumbs-up, and 42 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 $36.73.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.