Shutterfly (SFLY) Tops Q4 EPS by 23c, Beats on Revenues; Offers FY18 EPS Outlook Above Consensus, Revenue Mid-Point Guidance Above Estimates

Shutterfly (NASDAQ: SFLY) reported Q4 EPS of $3.11, $0.23 better than the analyst estimate of $2.88. Revenue for the quarter came in at $593.8 million versus the consensus estimate of $556.32 million.

Business Outlook

Full Year 2018:

• Net revenues to range from $1,220.0 million to $1,260.0 million
• Consumer revenue to range from $1,020.0 million to $1,050.0 million
• We anticipate mid-to-high single digit Shutterfly brand growth will be offset by lost revenue from the three websites we shut down
• We expect Consumer revenue to increase throughout the year. We expect a mid-single digit Consumer decline in the first half of 2018, a return to modest growth in the third quarter of 2018, and high-single digit growth in the fourth quarter of 2018, our first, true like-for-like comparable period
• SBS revenue to range from $200.0 million to $210.0 million
• Gross profit margin to range from 48.5% to 49.5% of net revenues
• Operating income to range from $115.0 million to $135.0 million
• Effective tax rate of 26.0%
• Net income per share to range from $1.94 to $2.38
• Weighted average shares of approximately 33.9 million
• Adjusted EBITDA to range from $260.0 million to $280.0 million
• Capital expenditures to be approximately $65.0 million

First Quarter 2018:

• Net revenues to range from $190.0 million to $194.0 million
• Consumer net revenue expected to decline mid-single digits over the first quarter of 2017
• Gross profit margin to range from 38.0% to 38.5% of net revenues
• Operating loss to range from $34.0 million to $32.0 million
• Effective tax rate of 26.0%
• Net loss per share to range from $0.96 to $0.92
• Weighted average shares of approximately 32.5 million
• Adjusted EBITDA to range from $3.0 million to $5.0 million

GUIDANCE:

Shutterfly sees FY2018 EPS of $1.94-$2.38, versus the consensus of $1.50. Shutterfly sees FY2018 revenue of $1.2-1.26 billion, versus the consensus of $1.21 billion.

For earnings history and earnings-related data on Shutterfly (SFLY) click here.

You May Also Be Interested In

• Primoris cuts 2026 outlook on renewables cost overruns, COO exits
• MP Materials seen largely insulated after China export-control move
• Ridgepost Capital acquires Stellus Capital Management for $4B AUM