Why Shutterstock (SSTK) Hit an All-Time High Today

NEW YORK (TheStreet) -- Shutterstock (SSTK) was gaining 19.21% to $98.25, and and hit an all-time high of $98.98 Friday after beating analysts' expectations in its fourth quarter results and and delivering better-than-expected 2014 guidance.

For its fourth quarter Shutterstock posted earnings of 22 cents a share, beating analyst estimates of 21 cents a share. The company reported revenue of $68 million, compared to analyst expectations of $65.9 million.

Looking to the first quarter, Shutterstock expects revenue between $69 million and $70 million. Analysts estimate revenue of $67.7 million for the quarter. For the full-year 2014 Shutterstock expects revenue between $305 million and $310 million, higher than analysts' estimate of $304.5 million.

Must read: Shutterstock CEO: Mobile Image Sharing Snowballing

TheStreet Ratings team rates SHUTTERSTOCK INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SHUTTERSTOCK INC (SSTK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and unimpressive growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, SSTK's share price has jumped by 220.63%, exceeding the performance of the broader market during that same time frame.
  • Compared to other companies in the Internet Software & Services industry and the overall market, SHUTTERSTOCK INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $14.65 million or 4.87% when compared to the same quarter last year. Despite an increase in cash flow, SHUTTERSTOCK INC's average is still marginally south of the industry average growth rate of 12.10%.
  • SHUTTERSTOCK INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 37.2% in earnings ($0.84 versus $1.33).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 29.2% when compared to the same quarter one year ago, falling from $8.74 million to $6.19 million.
  • You can view the full analysis from the report here: SSTK Ratings Report

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