Back to top

Image: Bigstock

What's in the Cards for Shutterfly (SFLY) in Q1 Earnings?

Read MoreHide Full Article

Shutterfly, Inc. is scheduled to report first-quarter 2018 numbers on May 1, after market close.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.9%. Moreover, the average trailing four-quarter beat is 13%.

Factors Likely to Influence

Shutterfly generally incurs loss in the first three quarters and makes profit in the final quarter of every year because of the seasonal nature of its business. Meanwhile, Shutterfly’s net revenues and performances are affected by vacation and other travel trends as these drive digital camera sales.

Therefore, for the first quarter, the company expects to incur net loss per share in the range of 92-96 cents. Also, the Zacks Consensus Estimate for the quarter is pegged at a loss of 95 cents compared with loss of 84 cents in the prior-year quarter. Net revenues are envisioned in the range of $1.22-$1.26 billion.

Furthermore, the company is making progress with Shutterfly 3.0 initiative, under which it created a new photo-management solution by integrating ThisLife technology. This new integrated photo management solution that greatly augments the legacy Shutterfly platform, is called the All New Shutterfly. The company has also migrated its most active customers to this service. This photo management service is expected to deepen the company’s relationships with its customers and drive increased sales over time.

In fact, continued expansion of the company’s product range is a core part of Shutterfly’s strategy. It had earlier launched products in personalized gifts and home décor. Also, the company’s innovative marketing campaigns are helping to lure new customers and generating a higher number of orders.

Shutterfly, Inc. Price, Consensus and EPS Surprise

Our Model Suggests a Beat

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Shutterfly has a Zacks Rank #3 and an Earnings ESP of +0.71%, a combination that suggests that the company is likely to beat estimates.

Stocks to Consider

Here are some restaurant companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Paycom Software, Inc. (PAYC - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GoDaddy Inc. (GDDY - Free Report) has an Earnings ESP of +75.69% and a Zacks Rank of 3.

Asure Software, Inc. (ASUR - Free Report) has an Earnings ESP of +30.09% and a Zacks Rank #3.

Investor Alert: Breakthroughs Pending

A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.

Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.

Click here to see them >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Asure Software Inc (ASUR) - free report >>

Paycom Software, Inc. (PAYC) - free report >>

GoDaddy Inc. (GDDY) - free report >>

Published in