In order to return wealth to its shareholders, the board of
), a personalized products and service provider, authorized an
increase of $100.0 million in its share repurchase program. The
increase reflects the company's confidence in its fundamentals
and its strong liquidity position.
In Nov 2012, Shutterfly's board had authorized the repurchase of
shares worth $60.0 million of outstanding Shutterfly common
stock. As of Dec 31, 2013, the company made share repurchases
worth $32.2 million. The company targets share repurchases worth
$100.0 million over the next five quarters.
Given the company's strong balance sheet, we believe that the
decision to make additional share repurchases is well justified.
As of Dec 31, 2013, cash and cash equivalents were $499.0
million, up from $245.0 million as of Dec 31, 2012. Net cash
provided by operating activities was $147.0 million, down 2.7%
year over year.
The share buyback will help the company reduce outstanding share
count, thereby increasing earnings per share and return on
equity. Meanwhile, this strategy to return wealth to shareholders
would keep the stock attractive as it demonstrates the company's
growth potential and stable liquidity position.
This Zacks Rank #3 (Hold) company reported strong fourth quarter
results last week, beating the Zacks Consensus Estimate for both
top and bottom lines. However, it provided a weak outlook for
2014 and expects to incur a loss in 2014 compared to profits
earned in 2013.
Some better-ranked stocks in the sector include
Global Eagle Entertainment Inc.
Giant Interactive Group, Inc.
). While YY Inc. carries a Zacks Rank #1 (Strong Buy),
Global Eagle Entertainment and Giant Interactive Group hold a
Zacks Rank #2 (Buy).
GLOBAL EAGL ENT (ENT): Free Stock Analysis
GIANT INTERACTV (GA): Free Stock Analysis
SHUTTERFLY INC (SFLY): Free Stock Analysis
YY INC-ADR (YY): Free Stock Analysis Report
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