Why Shutterfly, Inc. Dipped 12% in October

Why Shutterfly, Inc. Dipped 12% in October

Shares of photo products innovator Shutterfly, Inc. (NASDAQ: SFLY) fell 11.9% last month, according to data from S&P Global Intelligence.

Shutterfly stock dipped nearly 10.5% after the release of third-quarter 2017 earnings on Oct. 24. While revenue ticked up by 4% to $195.4 million, gross margin disappointed investors, declining by roughly 4 percentage points to 32.9%. Management attributed this drag to thinner margins in the company's Shutterfly Business Solutions (SBS) segment.

However, lower general and administrative expenses helped offset the decrease in gross margin, allowing the company to post an operating loss of $35.8 million -- an improvement versus the comparable prior-year quarter's operating loss of $38.5 million.

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Source: Fool.com