We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shutterfly's (SFLY) Loss Narrows in Q3, Sales Top; Stock Up
Read MoreHide Full Article
Shutterfly, Inc. posted narrower-than-expected loss in the third quarter of 2016. Revenues also beat estimates. Following the results, shares of the company rallied nearly 7% in afterhours trading on Oct 26.
Quarter in Detail
The personalized products and service provider’s business is highly seasonal and generally incurs losses in the first three quarters of the year.
Shutterfly posted a loss of 86 cents per share in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the company’s expectation of a loss of 90 cents to 97 cents. It was also much narrower than the prior-year quarter loss of $1.61 per share. The improvement came on the back of a higher top line.
Net revenue increased 11.8% year over year to $187.3 million and exceeded the guided range of $179.2 million to $185.9 million. In fact, the quarter marked the 63rd consecutive quarter of year-over-year net revenue growth. Further, revenues beat the Zacks Consensus Estimate of $184.0 million by 1.8%.
Revenues benefited from the strong performance of both the Consumer and Shutterfly Business Solutions (‘SBS’) segments, partially offset by weaker performance at the company’s Tiny Prints and Wedding Paper Diva brands. Nevertheless, the company completed the goals it had announced at the end of second quarter for Shutterfly 3.0.
Revenues from the Consumers category were $144.1 million, up 4.4% year over year backed by double-digit growth at the Shutterfly flagship brand. SBS segment revenues surged 46.8% to $43.2 million.
While the total number of customers was 3.2 million, up 1% year over year, total orders generated were 5.4 million, also up 1% year over year. Average order value was $26.71, up 3% from the year-ago quarter, driven by favorable product mix.
Gross margin increased 160 basis points (bps) to 37.1%, driven by efficiencies in manufacturing.
Operating expenses totaled $111.4 million, down 2.6% year over year primarily due to decline in sales and marketing as well as general and administrative expenses. The company continues to invest in additional customer facing enhancements with Shutterfly 3.0 and in the SBS business.
Adjusted EBITDA loss was $2.0 million, compared with the prior-year quarter loss of $4.4 million. Adjusted EBITDA was within the company’s expected range of a loss of $1 million to $4 million.
During the quarter, the company repurchased 263,452 shares for $12.7 million under its share repurchase program. The company had $104.4 million available for repurchase under its share repurchase program as of the end of Sep 30.
Q4 Earnings Outlook
For the fourth quarter of 2016, the company expects earnings per share in the range of $2.57 to $2.86. The Zacks Consensus Estimate of $2.82 comes within the range.
Net revenue is expected to be in the range of $557.0 million to $587.0 million, a year-over-year increase of 1.6% to 7.1%.
Gross profit margin is expected within 61.6% to 61.8% of net revenue. Adjusted EBITDA is expected in the range of $196.3 million to $209.2 million.
2016 Guidance
The company has updated its earnings per share expectation for full year 2016. It now expects earnings in the range of 40 to 66 cents per share compared with the previously guided range of 31 to 58 cents. The Zacks Consensus Estimate of 56 cents lies within the guided range.
Meanwhile, the company reiterated its previously issued guidance on other parameters. Net revenue is expected in the range of $1.130 billion to $1.160 billion, marking a year-over-year increase of 6.7% to 9.5%. Adjusted EBITDA is expected in the range of $210.0 to $222.9 million. Gross profit margin is projected in the range of 51.3% to 51.7% of net revenue.
Zacks Rank and Stocks to Consider
Shutterfly currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Internet Content and Services industry include Sina Corporation , Angie’s List, Inc. (ANGI - Free Report) , and Everyday Health, Inc. .
Sina Corporation’s current year growth estimate is pegged at 43.7% compared with the industry average of 8.5%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Angie’s List carries a Zacks Rank #2 (Buy). Its next fiscal year growth estimate is pegged at 73.8% compared with the industry average of 21.9%.
Everyday Health holds a Zacks Rank #2. Its next fiscal year growth estimate is pegged at 150.6% compared with the industry average of 21.9%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shutterfly's (SFLY) Loss Narrows in Q3, Sales Top; Stock Up
Shutterfly, Inc. posted narrower-than-expected loss in the third quarter of 2016. Revenues also beat estimates. Following the results, shares of the company rallied nearly 7% in afterhours trading on Oct 26.
Quarter in Detail
The personalized products and service provider’s business is highly seasonal and generally incurs losses in the first three quarters of the year.
Shutterfly posted a loss of 86 cents per share in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the company’s expectation of a loss of 90 cents to 97 cents. It was also much narrower than the prior-year quarter loss of $1.61 per share. The improvement came on the back of a higher top line.
Net revenue increased 11.8% year over year to $187.3 million and exceeded the guided range of $179.2 million to $185.9 million. In fact, the quarter marked the 63rd consecutive quarter of year-over-year net revenue growth. Further, revenues beat the Zacks Consensus Estimate of $184.0 million by 1.8%.
Revenues benefited from the strong performance of both the Consumer and Shutterfly Business Solutions (‘SBS’) segments, partially offset by weaker performance at the company’s Tiny Prints and Wedding Paper Diva brands. Nevertheless, the company completed the goals it had announced at the end of second quarter for Shutterfly 3.0.
Revenues from the Consumers category were $144.1 million, up 4.4% year over year backed by double-digit growth at the Shutterfly flagship brand. SBS segment revenues surged 46.8% to $43.2 million.
While the total number of customers was 3.2 million, up 1% year over year, total orders generated were 5.4 million, also up 1% year over year. Average order value was $26.71, up 3% from the year-ago quarter, driven by favorable product mix.
Gross margin increased 160 basis points (bps) to 37.1%, driven by efficiencies in manufacturing.
Operating expenses totaled $111.4 million, down 2.6% year over year primarily due to decline in sales and marketing as well as general and administrative expenses. The company continues to invest in additional customer facing enhancements with Shutterfly 3.0 and in the SBS business.
Adjusted EBITDA loss was $2.0 million, compared with the prior-year quarter loss of $4.4 million. Adjusted EBITDA was within the company’s expected range of a loss of $1 million to $4 million.
SHUTTERFLY INC Price, Consensus and EPS Surprise
SHUTTERFLY INC Price, Consensus and EPS Surprise | SHUTTERFLY INC Quote
Other Financial Update
During the quarter, the company repurchased 263,452 shares for $12.7 million under its share repurchase program. The company had $104.4 million available for repurchase under its share repurchase program as of the end of Sep 30.
Q4 Earnings Outlook
For the fourth quarter of 2016, the company expects earnings per share in the range of $2.57 to $2.86. The Zacks Consensus Estimate of $2.82 comes within the range.
Net revenue is expected to be in the range of $557.0 million to $587.0 million, a year-over-year increase of 1.6% to 7.1%.
Gross profit margin is expected within 61.6% to 61.8% of net revenue. Adjusted EBITDA is expected in the range of $196.3 million to $209.2 million.
2016 Guidance
The company has updated its earnings per share expectation for full year 2016. It now expects earnings in the range of 40 to 66 cents per share compared with the previously guided range of 31 to 58 cents. The Zacks Consensus Estimate of 56 cents lies within the guided range.
Meanwhile, the company reiterated its previously issued guidance on other parameters. Net revenue is expected in the range of $1.130 billion to $1.160 billion, marking a year-over-year increase of 6.7% to 9.5%. Adjusted EBITDA is expected in the range of $210.0 to $222.9 million. Gross profit margin is projected in the range of 51.3% to 51.7% of net revenue.
Zacks Rank and Stocks to Consider
Shutterfly currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Internet Content and Services industry include Sina Corporation , Angie’s List, Inc. (ANGI - Free Report) , and Everyday Health, Inc. .
Sina Corporation’s current year growth estimate is pegged at 43.7% compared with the industry average of 8.5%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Angie’s List carries a Zacks Rank #2 (Buy). Its next fiscal year growth estimate is pegged at 73.8% compared with the industry average of 21.9%.
Everyday Health holds a Zacks Rank #2. Its next fiscal year growth estimate is pegged at 150.6% compared with the industry average of 21.9%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>