Shutterfly forecasts bigger-than-expected loss, shares fall

Wed Feb 5, 2014 5:48pm EST

(Reuters) - Online photo-sharing services provider Shutterfly Inc (SFLY.O) forecast a bigger-than-expected loss in the current quarter after reporting an 18 percent fall in fourth-quarter profit due to higher expenses.

The company's shares fell 11 percent in extended trading.

Shutterfly forecast current-quarter adjusted loss of 86-92 cents per share, way above the 42 cents loss analysts on average were expecting, according to Thomson Reuters I/B/E/S.

The company said it expects revenue of $132 million to $135 million, missing the average analyst estimate of $138.4 million.

Shutterfly gets most of its revenue from selling photo books, greeting cards and stationery from users' photos and competes with Hewlett-Packard's (HPQ.N) Snapfish and Facebook Inc (FB.O).

Shutterfly's fourth-quarter profit fell to $43.6 million, or $1.10 per share, from $53.0 million, or $1.40 per share, a year earlier.

Operating expenses rose 27 percent to $141.5 million.

On an adjusted basis, Shutterfly earned $1.20 per share, beating analysts' average estimate of $1.07 per share.

Revenue in the holiday shopping quarter — which accounts for about half of the company's total revenue — rose 17 percent to $410.8 million, above analysts' expectation of $406.3 million.

Shares of the Redwood City, California-based company closed at $49.67 on the Nasdaq on Wednesday.

(Reporting by Sampad Patnaik in Bangalore; Editing by Sriraj Kalluvila)

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