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Zacks Equity Research

Will Shutterfly (SFLY) Crush Estimates at Its Next Earnings Report?
November 29, 2016

SFLY

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Shutterfly, Inc. (SFLY - Free Report) , a firm in the Internet - Content industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, SFLY has beaten estimates by at least 10% in both cases, suggesting it has a nice short-term history of crushing expectations.  

Earnings in Focus

Two quarters ago, SFLY expected to post a loss of 66 cents per share, while it actually produced a loss of 48 cents per share, a beat of 27.3%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 96 cents per share, when it actually reported loss of 86 cents per share instead, representing a 10.4% positive surprise.

SHUTTERFLY INC Price and EPS Surprise

 

SHUTTERFLY INC Price and EPS Surprise | SHUTTERFLY INC Quote

Thanks in part to this history, recent estimates have been moving higher for Shutterfly. In fact, the Earnings ESP for SFLY is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for SFLY, as the firm currently has a Zacks Earnings ESP of 2.88%, so another beat could be around the corner.

This is particularly true when you consider that SFLY has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that SFLY could see another beat at its next report, especially if recent trends are any guide.

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