Shutterfly (SFLY) Reports Narrower-Than-Expected Loss In Q1
Zacks Investment Research | Apr 28, 2019 09:46PM ET
Shutterfly, Inc. (NASDAQ:SFLY) reported better-than-expected results in the first quarter of 2019. Notably, this marked the company’s ninth straight quarter of earnings beat. Its revenues surpassed estimates after missing it for two consecutive quarters.
Adjusted loss of $2.44 per share compared favorably with the Zacks Consensus Estimate of loss of $2.53 but was wider than the prior-year quarter’s recorded loss of $2.47.
Net revenues totaled $324.7 million, which improved 62.6% year over year and surpassed the consensus mark of $323 million. The sharp increase in the top line was primarily owing to robust performance by the Lifetouch and Business Solutions segment, offset by lower-than-expected Shutterfly Consumer segment revenues. Notably, first-quarter earnings marked the 73rd consecutive quarter of year-over-year net revenue growth.
Segment Results
Revenues at the Consumers category amounted to $148.8 million, down2.1% year over year. The segment’s cost of net revenues increased 6.6% year over year in the first quarter. Margins, as a percentage of total revenues, were negative 5.6%, comparing unfavorably with the prior-year quarter’s margin growth of 1%.
The Lifetouch segment generated revenues of $130 million. This segment was formed following the acquisition of Lifetouch. Revenues from the Shutterfly Business Solutions (SBS) segment declined 2.4% year over year to $46.5 million. The segment’s margins in the quarter grew 7.9%, marking an improvement of 290 basis points (bps) from the first quarter of 2018.
Shutterfly, Inc. Price, Consensus and EPS Surprise
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