Shutterstock Inc. reported its earnings report for the second quarter this week with a profit value of $3.1 million from the past three months that ended on the 30th of June.
Shareholders of Shutterstock were looking forward for any signs that can potentially spark a revenue growth for the digital media provider. However, the investors were greeted with a declining Sales Growth as the company had its net income drop to $3.1 million for the quarter – a 58% drop from the recent period.
The revenue growth for the quarter did rise however. For the quarter, the revenue data was at 8% to $134.0 million. This data missed the estimates of $137.9 of analysts for the company.
Earnings per share for the second quarter missed the estimates of 37 per share. The data announced for this was 24 cents per share. Net income of the digital media provider was at 9 cents for the quarter.
As for the full year revenue of Shutterstock, the company is expecting a value between $535 million to $545 million.
Since the beginning of 2017, Shutterstock’s shares have declined at about 12%. In a 12-month perspective, the stock fell 25% generally.
Shutterstock’s main business is its digital media provision. The company is famous for providing images, videos and any other digital materials that can be acquired with a given fee. According to sources, the company is now looking to transform its digital presence as an act to its declining sales. With this, the number of clients of Shutterstock, which is very vital for the company, will boost and such will certainly be a beneficial moment for the digital company.
Shutterstock’s performance had a massive drop since its earnings release. From the 40’s region, the digital provider was pulled down to the slumps of 30’s region indicating an immense sell out by the investors. It can be reasoned out for the fact that these investors were disappointed with the results and thus making them sell their shares for the company.
The company’s Relative Strength Index also mirrored the performance. The huge decline labeled the stock as a much oversold company with its RSI level indicating a result below 30’s, specifically at 18.20.
Lastly, the Coppock curve indicator was seen declining badly in its recent trades. Shutterstock was seen pulled down to the depths of the negative region. Right now, it is at -24.62 – a very much recommended sell for the pair. However, the recent trades had shown that it may recover somehow but it may take a lot of time to pick itself back up from its dreadful trend.
FSM News is a daily updated news website about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. FSM News is here for you.