Stock Story -
Stock photography and footage provider Shutterstock (NYSE:SSTK) will be announcing earnings results tomorrow morning. Here's what to look for.
Shutterstock beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $214.3 million, flat year on year. It was a weaker quarter for the company, with a decline in its users. It reported 35 million users, down 18% year on year.
Is Shutterstock a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Shutterstock's revenue to grow 2.2% year on year to $213.4 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shutterstock has missed Wall Street's revenue estimates four times over the last two years.
Looking at Shutterstock's peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MercadoLibre (NASDAQ:MELI) delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and Remitly (NASDAQ:RELY) reported revenues up 30.9%, topping estimates by 1.5%. MercadoLibre traded up 10.7% following the results while Remitly was also up 3.7%.
Read the full analysis of MercadoLibre's and Remitly's results on StockStory.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. Shutterstock is up 12.6% during the same time and is heading into earnings with an average analyst price target of $58.6 (compared to the current share price of $39.49).
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