Shutterstock (NYSE:SSTK) recently reported earnings for its third quarter of Fiscal Year 2022. Adjusted earnings per share came in at $1, which beat analysts’ consensus estimate of $0.94 per share. In the past nine quarters, the company has beaten estimates eight times.
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Sales increased 5% year-over-year, with revenue hitting $204.1 million compared to $194.4 million. The revenue growth can be attributed to the company’s acquisitions of PicMonkey and Pond5, as well as the momentum seen in its Enterprise segment. However, this was lower than the $213.2 million that analysts were looking for.
Furthermore, Shutterstock lowered its sales forecast for Fiscal Year 2022. The previous outlook was in the range of $835 million to $850 million, whereas management now expects $815 million.
Nonetheless, the company narrowed its earnings per share guidance by increasing the bottom end of its range from $3.65 to $3.75. The upper end remains at $3.80 per share.
Is SSTK Stock a Buy?
SSTK has a Strong Buy consensus rating based on five Buys, one Hold, and zero Sells assigned in the past three months. The average SSTK stock price target of $72.60 implies 40.64% upside potential.
