Shutterfly Beats Up on Analysts Yet Again

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Shutterfly (NAS: SFLY) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shutterfly beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.

Margins shrank across the board.

Revenue details
Shutterfly tallied revenue of $263.8 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $260.9 million. Sales were 59% higher than the prior-year quarter's $166.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.97. The four earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. GAAP EPS of $0.97 for Q4 were 11% lower than the prior-year quarter's $1.09 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.9%, 270 basis points worse than the prior-year quarter. Operating margin was 27.5%, 290 basis points worse than the prior-year quarter. Net margin was 13.4%, 620 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $90.4 million. On the bottom line, the average EPS estimate is -$0.27.

Next year's average estimate for revenue is $584.7 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 150 members out of 272 rating the stock outperform, and 122 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Shutterfly a green thumbs-up, and 43 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 $39.

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At the time this article was published 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 ofMotley 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.

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