Will Lifetouch Acquisition Enable Shutterfly To Beat Market Expectations For 3Q’18?

SFLY: Shutterfly logo

Shutterfly (NASDAQ:SFLY) is slated to report its September quarter financial performance on 30th October 2018. The company’s revenue is expected to grow driven by its improved customer experience and integrated product offering. Further, the Lifetouch acquisition has been one of the company’s biggest acquisitions so far, and has already delivered better-than-expected operational performance year-to-date. We expect the integration of Lifetouch, along with the company’s strategic initiatives  to optimize its technology, and a strong focus on building its brands, to drive its value in the near term.

We have a price estimate of $80 per share for the company, which is higher than its current market price. View our interactive dashboard – Shutterfly’s Price Estimate and modify the key drivers to visualize their impact on its valuation.

Relevant Articles
  1. Why Is Apollo Global Management Acquiring Shutterfly?
  2. Lifetouch Powers Shutterfly’s Q1 Results, And Will Continue To Drive Growth Going Forward
  3. Lifetouch Acquisition To Continue To Drive Top-Line Growth For Shutterfly In Q1
  4. Breaking Down Shutterfly’s Key Revenue Drivers
  5. Lifetouch Acquisition Should Continue To Drive Growth For Shutterfly
  6. Can Lifetouch Acquisition Drive Shutterfly’s Q4?

Key Trends To Watch For In 3Q’18 Results

  • Shutterfly had closed the Lifetouch acquisition in the second quarter. Consequently it had changed its reporting structure to reflect three divisions – Shutterfly Consumer, Lifetouch, and Shutterfly Business Solutions, each of them having significant opportunities for the company.
  • Further, the company plans to limit the use of free promotions over time and focus on acquiring customers cost effectively.
  • The company is progressing well with the integration of the Lifetouch acquisition, which will enable it to realize notable cost and revenue synergies over time. We will keenly watch the 3Q’18 results for further updates on the progress of the integration.

  • As part of its strategic initiatives, Shutterfly had launched eight new personalized gifts and home décor products in the second quarter, including ceramic coasters, pot holders, and photo wristlets. It further launched Kids and Pets categories, expanding the range of products it offers. We expect the company to expand its offering further in the third quarter in order to achieve its goal to double the number of new products launched in 2018 versus 2017.

Do not agree with our forecast? Create your own price forecast for Shutterfly by changing the base inputs (blue dots) on our interactive dashboard.


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