Shutterstock (NYSE:SSTK) Releases Quarterly Earnings Results, Misses Estimates By $0.46 EPS

Key Points

• Shutterstock reported earnings of $1.19 EPS, missing analysts' estimates by $0.46, while revenue for the quarter was $266.99 million, exceeding expectations.
• The company announced a quarterly dividend of $0.33, with a dividend yield of 6.71%, but its dividend payout ratio stands at an unsustainable 121.10%.
• Shutterstock's stock decreased by $0.66 during midday trading, reaching $19.68, amidst analyst ratings that include one buy and several hold assessments.

Shutterstock (NYSE:SSTK - Get Free Report) released its quarterly earnings results on Tuesday. The business services provider reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.65 by ($0.46), Briefing.com reports. Shutterstock had a return on equity of 18.42% and a net margin of 6.36%. The firm had revenue of $266.99 million for the quarter, compared to analysts' expectations of $248.27 million. During the same period last year, the firm earned $1.00 EPS. The business's quarterly revenue was up 21.3% on a year-over-year basis.

Shutterstock Stock Down 2.5%

Shutterstock stock traded down $0.47 during trading hours on Friday, hitting $18.69. The company had a trading volume of 278,965 shares, compared to its average volume of 473,651. The firm has a market capitalization of $662.93 million, a P/E ratio of 10.33 and a beta of 1.15. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.49 and a quick ratio of 0.43. The firm's fifty day moving average is $18.88 and its 200-day moving average is $20.71. Shutterstock has a fifty-two week low of $14.35 and a fifty-two week high of $40.49.

Shutterstock Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th will be issued a dividend of $0.33 per share. The ex-dividend date is Thursday, September 4th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 7.1%. Shutterstock's payout ratio is currently 121.10%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Needham & Company LLC decreased their price objective on shares of Shutterstock from $30.00 to $25.00 and set a "buy" rating for the company in a report on Monday, June 2nd. Wall Street Zen raised shares of Shutterstock to a "hold" rating in a report on Saturday, June 14th. Finally, JMP Securities reissued a "market perform" rating on shares of Shutterstock in a report on Monday, May 5th. Four research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $43.67.

Institutional Trading of Shutterstock

A hedge fund recently raised its stake in Shutterstock stock. Millennium Management LLC grew its holdings in Shutterstock, Inc. (NYSE:SSTK - Free Report) by 109.3% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 626,615 shares of the business services provider's stock after buying an additional 327,203 shares during the quarter. Millennium Management LLC owned 1.78% of Shutterstock worth $11,674,000 as of its most recent filing with the SEC. Institutional investors and hedge funds own 82.79% of the company's stock.

About Shutterstock

Shutterstock, Inc provides platform to connect brands and businesses to high quality content in North America, Europe, and internationally. The company offers image services consisting of photographs, vectors, and illustrations, which is used in visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications, and others; footage services, including video clips, filmed by industry experts and cinema grade video effects in HD and 4K formats that are integrated into websites, social media, marketing campaigns, and cinematic productions; and music services comprising music tracks and sound effects, which are used to complement images and footage.