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 grew significantly. Non-GAAP loss per share contracted. GAAP loss per share grew.
Gross margins dropped, operating margins expanded, net margins grew.
Shutterfly recorded revenue of $133.5 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $122.1 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $99.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.04. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.17 per share. Non-GAAP EPS were -$0.04 for Q2 compared to -$0.27 per share for the prior-year quarter. GAAP EPS were -$0.31 for Q2 versus -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 46.3%, 250 basis points worse than the prior-year quarter. Operating margin was -17.9%, 10 basis points better than the prior-year quarter. Net margin was -8.8%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $119.6 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $771.4 million. The average EPS estimate is $1.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 162 members out of 281 rating the stock outperform, and 119 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Shutterfly a green thumbs-up, and 39 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 $53.73.
Is Shutterfly the right Internet stock for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Shutterfly to My Watchlist.