Shutterfly beats estimates, driven by holiday season
(Reuters) - Online photo-sharing service provider Shutterfly Inc's results beat analysts' estimates in the traditionally strong fourth quarter on higher demand during the holiday season, particularly in its enterprise unit.
The company's shares were up 13 percent in after-market trading.
Revenue at the enterprise business, earlier called the commercial print service, is derived from the printing and shipping of direct marketing and other variable data-print products and formats.
In 2011, the business represented about 3 percent of Shutterfly's total sales of $473.3 million.
The company, which gets most of its revenue from professionally bound photo books, greeting and stationery cards and other photo-based merchandise, traditionally generates more than 50 percent of its annual revenue in the fourth quarter.
Net income rose to $53.0 million, or $1.40 per share, in the quarter ended December 31, from $35.4 million, or 97 cents per share, a year earlier.
Analysts had expected earnings of $1.01 per share, according to Thomson Reuters I/B/E/S.
Revenue increased 33 percent to $351.8 million, above analysts' expectations of $309.7 million. [ID:nBw6GFrDza] The company's revenue has now beaten analysts' estimates for nine consecutive quarters.
Revenue at the enterprise segment rose 79 percent to $8.3 million.
Shutterfly, which competes mainly with Hewlett-Packard's Snapfish, Webshots and Facebook Inc, expects a loss of between 39 cents and 42 cents per share on revenue of $107.2 million to $110 million for the first quarter.
Analysts were expecting a loss of 32 cents per share on revenue of $108.7 million.
The company's shares, which have risen about 15 percent in the last three months, closed at $33.59 on the Nasdaq on Tuesday.
(This story was fixed to correct headline to "driven by holiday season" from "driven by enterprise business")
(Reporting by Chandni Doulatramani in Bangalore; Editing by Maju Samuel)
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