Shutterfly Sets 52-Week High - Analyst Blog
April 15 2013 - 7:50AM
Zacks
Shares of Shutterfly Inc. (SFLY) hit its
52-week high of $45.90 on Apr 12 and eventually closed at $44.97,
generating a return of approximately 45.8% year-to-date.
Shutterfly’s shares have been riding high since it reported solid
fourth quarter results on Feb 5. Average volume of shares traded
over the last three months came in at approximately 895K.
Factors Driving Momentum
A strong business model, a string of acquisitions and potential
for future share growth boosted the shares of this Internet-based
social expression and personal publishing service company.
Shutterfly offers innovative products and services and has ample
manufacturing capacity. Shutterfly’s fourth-quarter 2012 earnings
of $1.40 per share breezed past the Zacks Consensus Estimate by
38.6% and the year-ago result by 44.3%. Increased revenues (up 33%)
along with efficient cost containment led to the beat.
Shutterfly is focused on growing its business through strategic
partnerships with retailers and through acquisitions. Some of
Shutterfly’s latest acquisitions include ThisLife in Jan 2013; Fuji
Film’s photo creating and sharing website SeeHere.com in Oct 2012
and Kodak Gallery online photo services (formerly known as Ofoto)
in May 2012. Management also expects Kodak to deliver a
significantly higher EBITDA margin in fiscal 2013.
The company’s market share is growing steadily. Its market
leading position is driven by its ability to launch new products
and services, expand its customer base, improve operational
efficiency and seamlessly integrate related acquisitions. According
to InfoTrends, Shutterfly accounts for around 50% to 52% of the
present market.
The increasing use of digital cameras, largely driven by price
decreases, has led to heightened demand for online photo printing
services, which leaves ample scope for Shutterfly’s expansion. The
company also remains committed towards launching services like
one-to-one greeting card service, thus beefing up its
mobile-related offerings.
Shutterfly is scheduled to report its first quarter 2013
earnings early next month. This company currently carries a Zacks
Rank #1 (Strong Buy) and a positive earnings ESP (Read: Zacks
Earnings ESP: A Better Method) of +4.88%. This indicates a likely
positive earnings surprise.
Other Stocks to Consider
Stocks that are performing well and are worth considering in the
Internet-based business services sector include Angie's
List Inc. (ANGI), Giant Interactive Group
Inc. (GA) and Perion Network Ltd
(PERI). All three stocks carry a Zacks Rank #2 (Buy).
GIANT INTERACTV (GA): Free Stock Analysis Report
PERION NETWORK (PERI): Get Free Report
SHUTTERFLY INC (SFLY): Free Stock Analysis Report
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