UPDATE 1-Shutterfly forecast disappoints, shares fall
Oct 29 (Reuters) - Online photo-sharing service Shutterfly Inc forecast current-quarter results way below analysts' estimates, sending its shares down 10 percent in extended trading.
The company, which competes with Hewlett-Packard's Snapfish, said it expected fourth-quarter adjusted profit of 95 cents-$1.11 per share on revenue of $392.1-$405.1 million.
Analysts on average expected a profit of $1.45 per share on revenue of $414.7 million, according to Thomson Reuters I/B/E/S.
Needham & Co analyst Kerry Rice said the market could be over-reacting. The company usually forecasts "pretty conservatively" but has beaten analysts' estimates for the last five quarters, he said.
Shutterfly, which already has apps for Apple Inc's iPhones and iPads, recently launched an app for Google Inc's Android-powered phones. The company now gets a quarter of its traffic from mobile devices.
Application downloads on smartphones, tablets and other mobile computing devices will increase to 187 billion in 2017 from 87.8 billion in 2013, IDC forecast in June. ()
Shutterfly's revenue rose 25 percent to $122.7 million in the third quarter ended Sept. 30, beating analyst estimate of $118.4 million.
The company gets most of its revenue from selling photo books, greeting cards and stationery from users' photos.
The company's quarterly net loss narrowed to $10.1 million, or 27 cents per share, from $10.5 million, or 29 cents per share.
The company posted an adjusted loss of 24 cents per share. Analysts on average had expected a loss of 60 cents per share.
Shutterfly's shares, which have risen about 22 percent in the last three months, closed at $52.26 on the Nasdaq on Tuesday.