Shutterfly Inc (NASDAQ:SFLY)
Shutterfly, Inc. (SFLY), leading global online retailer and manufacturer of high-quality personalized products and services company yesterday reported their fourth quarter and full year 2016 fiancial results. Shutterfly reported fourth quarter earnings of $2.63 per share. Shutterfly reported fourth quarter revenues of $561.2 million which fell short of analyst estimates of $586.4 million.
Shutterfly, Inc.CEO’s Comments
“We’re proud of our 2016 delivery against key initiatives, particularly Shutterfly Business Solutions, mobile, and product range expansion, as well as our continued progress on Operating Income, which more than doubled year-over-year,” said Christopher North, President and Chief Executive Officer of Shutterfly. “At the same time, Consumer growth came towards the low end of our guidance, and Adjusted EBITDA slightly below guidance, as Shutterfly-brand growth was offset by revenue declines in the Tiny Prints, Wedding Paper Divas, MyPublisher, and BorrowLenses brands.” Business Wire
SFLY Technical Analysis
SFLY opened trading yesterday at $51.50 which was up from the previous day’s trading close of $51.33. Shares closed trading yesterday at $51.77 and crashed down after market to $42.45, equivalent to a 18% decrease from the closing price. Taking a look at the daily chart we can see that the last time SFLY traded below these levels we have to go back to October 26th, 2016 when it traded at $42.07.
Taking a closer look at the daily chart we can see that before the spike down SFLY had been in an overall upward trend dating back to the lows reached on October 26th. SFLY has a float of 27.74 million shares and traded 2.38 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see SFLY open trading on Thursday below $45.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Shutterfly, Inc. engages in manufacturing and retailing personalized products and services in the United States. The company operates through Consumer and Enterprise segments. It offers a range of personalized photo-based products and services that enable consumers to upload, edit, enhance, organize, find, share, create, print, and preserve their memories. The company also provides photo-based products, such as photo books; cards and stationery; photo gifts; home décor; photo prints comprising wallet 4×6, 5×7, 8×10, square, and large format sizes, including posters and collages; and photo-based merchandise items consisting of mugs, iPhone cases, desktop plaques, candles, pillows, canvas prints, and blankets. In addition, it operates an online cards and stationery boutique that sells announcements, invitations, and personal stationery for every occasion; and cloud services under the Tiny Prints name.
Further, it offers personalized save the dates, wedding invitations, thank you cards, and bridal invitations under the Wedding Paper Divas brand; and ThisLife, a service that gathers and organizes photos and videos. Additionally, the company provides MyPublisher, which allows customers to create custom photo books, share memories, and tell their stories using their own photos; BorrowLenses, an online marketplace for photographic and video equipment rentals; and Groovebook, a mobile photo book application subscription service that sends customers a keepsake book of their mobile photos each month. It also engages in the advertising and sponsorship activities; and printing and shipping of direct marketing and other variable data print products and formats, as well as operates Share sites, a share platform. The company was founded in 1999 and is headquartered in Redwood City, California.