Founded in 1999 and headquartered in Redwood City, CA, Shutterfly is a leading provider of Internet-based social expression and personal publishing service. They had IPO’d in 2006.
The company has a portfolio of premium lifestyle brands including Shutterfly, Tiny Prints, Wedding Paper Divas, BorrowLenses, MyPubisher, and Groovebook.
Consumer revenues accounted for 93% of total revenue in 2016, while Business Solutions contributed 7%.
Results Disappoint
The company reported weak Q4 2016 results, missing on both the top and bottom lines. Adjusted earnings of $2.63 per share were short of the Zacks Consensus Estimate of $2.73. Earnings were also down 26.3% year-over-year.
While net revenue increased 2% year-over-year, they missed the Zacks Consensus Estimate of $586.4 million.
Management’s outlook for the current quarter was also weaker than street expectations. Shares plunged after the report.
“In recent years, we spread our resources thin across many businesses, brands and platforms, making it impossible to dedicate the right level of resource to each one,” said the CEO.
They also announced reduction of their head count by 13% and closing of three offices.
Falling Estimates
Analysts have slashed their estimates for the company after disappointing results. Zacks Consensus Estimates for the current and the next fiscal year have plunged to $0.56 per share and $1.43 per share respectively, from $1.20 and $1.98, 7 days ago. Declining estimates sent the stock to a Zacks Rank #5 (Strong Sell).
The following chart shows negative price and earnings momentum:
The Bottom-Line
Considering the sharp plunge in analysts’ earnings estimates, it appears that more pain lies ahead for the company. Investors looking for a better stock in the industry could consider RELX PLC (RELX), which currently has a Zacks Rank #2 (Buy).
More Stocks to Sell. Now.
Beyond our Bear Stock of the Day, today's list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Founded in 1999 and headquartered in Redwood City, CA, Shutterfly is a leading provider of Internet-based social expression and personal publishing service. They had IPO’d in 2006.
The company has a portfolio of premium lifestyle brands including Shutterfly, Tiny Prints, Wedding Paper Divas, BorrowLenses, MyPubisher, and Groovebook.
Consumer revenues accounted for 93% of total revenue in 2016, while Business Solutions contributed 7%.
Results Disappoint
The company reported weak Q4 2016 results, missing on both the top and bottom lines. Adjusted earnings of $2.63 per share were short of the Zacks Consensus Estimate of $2.73. Earnings were also down 26.3% year-over-year.
While net revenue increased 2% year-over-year, they missed the Zacks Consensus Estimate of $586.4 million.
Management’s outlook for the current quarter was also weaker than street expectations. Shares plunged after the report.
“In recent years, we spread our resources thin across many businesses, brands and platforms, making it impossible to dedicate the right level of resource to each one,” said the CEO.
They also announced reduction of their head count by 13% and closing of three offices.
Falling Estimates
Analysts have slashed their estimates for the company after disappointing results. Zacks Consensus Estimates for the current and the next fiscal year have plunged to $0.56 per share and $1.43 per share respectively, from $1.20 and $1.98, 7 days ago. Declining estimates sent the stock to a Zacks Rank #5 (Strong Sell).
The following chart shows negative price and earnings momentum:
The Bottom-Line
Considering the sharp plunge in analysts’ earnings estimates, it appears that more pain lies ahead for the company. Investors looking for a better stock in the industry could consider RELX PLC (RELX), which currently has a Zacks Rank #2 (Buy).
More Stocks to Sell. Now.
Beyond our Bear Stock of the Day, today's list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>