Shutterfly Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Shutterfly (NAS: SFLY) reported earnings on July 25. Here are the numbers you need to know.

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.

Revenue details
 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 details
 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.

Margin details
 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.

Looking ahead
 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.

Investor sentiment
 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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The article Shutterfly Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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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