Shares of Shutterfly, Inc. (SFLY) soared 11 percent in extended trading on Monday after the photo sharing website reported a loss for the first quarter that widened from last year on higher expenses, but came in significantly narrower than analysts' expectations.
The company also provided earnings and revenue forecast for the second quarter, below Street view, but raised its revenue outlook for the full-year 2012, while trimming earnings forecast.
"The first quarter was a solid start to the year for us with strength across all three of our business categories," President and CEO Jeffrey Housenbold said in a statement.
The Redwood City, California-based Internet-based social expression and personal publishing service provider posted a net loss of $10.0 million or $0.29 per share for the first quarter, wider than $7.8 million or $0.27 per share in the prior-ear quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $0.32 per share for the first quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter surged 60 percent to $91.29 million from $57.23 million in the same quarter of last year, and topped nine Wall Street analysts' consensus estimate of $84.59 million.
"Capitalizing on our scale and profitability, we enhanced our product and service offerings, launched Treat, our 1:1 greeting card service and were successful in negotiating the transfer of Kodak Gallery's customer accounts and data to Shutterfly," Housenbold added.
Personalized products & services net revenues surged 72 percent year-over-year to $70.2 million, representing 77 percent of total net revenues. Net revenues from prints totaled $14.9 million, with commercial print net revenues of $6.2 million.
Transacting customers totaled 1.6 million, a 18 percent year-over-year increase, orders grew 22 percent to 2.5 million from last year, with average order value declining 8 percent to $24.60 from a year ago.
Gross profit margin for the quarter contracted 300 basis points to 45 percent from last year's 48 percent.
Looking ahead to the second quarter, the company expects to report a loss in a range of $0.33 to $0.37 per share, on quarterly net revenues between $90 million and $92 million. Analysts currently expect the company to report a loss of $0.26 per share for the second quarter, on revenues of $88.41 million.
For fiscal 2012, the company anticipates earnings in a range of $0.07 to $0.16 per share, on annual net revenues between $576 million and $586 million. Street is currently looking for full-year 2012 earnings of $0.40 per share on revenues of $556.29 million.
Previously, the company expected fiscal 2012 earnings of $0.25 to $0.28 per share on revenues between $550 million and $560 million.
SFLY closed Monday's regular trading session at $31.16, down $0.50 or 1.58% on a volume of 2.16 million shares. However, the stock soared $3.43 or 11.01% in the after-hours trading.
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