Shutterstock’s fourth-quarter earnings report has left investors with a sweet aftertaste, as the company surpassed the Zacks Consensus Estimate of $0.68 per share, clocking in at $0.72. This performance, however, marks a decrease from earnings of $1.05 per share in the previous year. Adjusted for non-recurring items, these figures illustrate Shutterstock’s resilience in a fluctuating market.
Notably, the latest quarterly earnings report showcases a positive 5.88% surprise, following the previous quarter’s remarkable 51.81% earnings outperformance. Over the past year, Shutterstock has exceeded consensus EPS estimates four times, pointing to a pattern of steady growth and adaptability.
Candid Review of Financials
Despite falling slightly short of the projected revenues at $217.22 million for the quarter ended December 2023, compared to the Zacks Consensus Estimate, Shutterstock has displayed remarkable agility by exceeding revenue expectations two out of the last four quarters. While the company’s shares have seen a 7.9% decline since the year’s commencement, the S&P 500 has surged by 4.3% over the same period, prompting investors to ponder the future trajectory of Shutterstock’s performance.
Future Fortunes of Shutterstock
As investors eagerly anticipate the company’s next steps, the onus lies on Shutterstock’s earnings outlook to reassure stakeholders of its growth potential. While current consensus earnings expectations for upcoming quarters hold significance, the track record of earnings estimate revisions has been a reliable indicator of near-term stock fluctuations. The Zacks Rank, a trusted rating tool, bears witness to the significance of earnings estimate revisions in predicting future stock movements.
The current Zacks Rank #3 (Hold) status signifies that the stock is anticipated to move in sync with the broader market. With the current consensus EPS estimate and revenues for the ensuing quarter at $0.96 and $225.7 million respectively, and $4.26 and $947.01 million for the current fiscal year, investors will keenly observe the industry landscape, which is currently in the top 12% of the 250+ Zacks industries.
Looking Beyond Shutterstock
Shutterstock’s performance is reflective of broader trends within the Zacks Computer and Technology sector. The imminent results of Kaltura, Inc. (KLTR) will further shed light on the industry’s landscape. With expected quarterly losses of $0.02 per share, representing a whopping year-over-year change of +66.7%, and a revenue projection of $41.97 million, down 4.8% from the previous year, Kaltura, Inc.’s performance will be closely watched.
Alongside these developments, Zacks Investment Research has identified 5 stocks with the potential to double, inviting investors to explore these burgeoning opportunities within the market.
