Shutterfly Analysts Weigh Fate as Forecast Miss Sinks Shares
- CEO to resign; company builds review board to consider options
- Review is appropriate given ‘disappointing’ quarter: SunTrust
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Shutterfly Inc., the e-retailer of personalized frames and photo albums, sank as much as 13 percent Wednesday after its fourth-quarter results and forecast missed estimates.
Analysts were divided on the company’s strategic review as Chief Executive Officer Christopher North plans to step down in August. Bulls on the stock such as KeyBanc see the formation of a strategic review board providing “valuation support.” On the other side, bears like Goldman Sachs cautioned that results continue to be hampered by a decline in its core revenue and increased competition.