Shutterfly (SFLY) Q3 Earnings Beat Estimates, Stock Down 10%
Zacks Investment Research | Oct 30, 2018 11:25PM ET
Shutterfly, Inc. (NASDAQ:SFLY) reported mixed third-quarter 2018 results, with the bottom line surpassing the Zacks Consensus Estimate and top line lagging the same. Earnings beat the consensus estimate for the seventh straight quarter, while revenues missed the mark after four straight beats. Following the results, shares of the company lost 10.3% in after-hour trading.
Adjusted loss came in at $2.12 per share, 12.4% narrower than the consensus estimate of a loss of $2.42. The bottom line was severely dented by higher expenses.
Net revenues of $368.8 million increased 88.7% year over year but lagged the consensus mark of $377 million. The sharp increase in the top line was primarily owing to robust performance by the Lifetouch segment, offset by a weak Shutterfly Consumer. Third-quarter earnings marked the 71st consecutive quarter of year-over-year net revenue growth.
Revenues in Detail
Revenues at the Consumers category totaled $127 million, down 6% year over year due to lower-than-expected Shutterfly brand revenues and the shutdown of the Wedding Paper Divas website which impacted comps growth.
Lifetouch segment generated revenues of $187 million. This segment was formed following the acquisition of Lifetouch. Revenues from the Shutterfly Business Solutions (SBS) segment declined 2% year over year to $59 million.
Unique customers declined 6% year over year to 2.8 million and total orders decreased 12% year over year to 4.3 million. Meanwhile, average order value increased 7% to $29.69 backed by better product mix and shift toward paid revenues.
Shutterfly, Inc. Price, Consensus and EPS Surprise
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