Can Shutterfly (SFLY) Keep the Earnings Streak Alive This Quarter? - Tale of the Tape

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider Shutterfly, Inc. ( SFLY ), a firm in the Personalized Services industry which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, SFLY has beaten estimates by at least 45% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, SFLY expected a loss of 54 cents per share, while it actually produced loss of 29 cents per share, a beat of 46.3%. Meanwhile, for the most recent quarter, the company looked to deliver loss of 62 cents per share, when it actually saw loss of 24 cents per share instead, representing a 61.3% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Shutterfly. In fact, the Earnings ESP for SFLY is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for SFLY, as the firm currently has a Zacks Earnings ESP of 8.33%, so another beat could be around the corner.

This is particularly true when you consider that SFLY has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that SFLY could see another beat at its next report, especially if recent trends are any guide.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Earnings , Investing Ideas , Stocks

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