(STMP) Stock Surges on Record 1Q Earnings, Revenue

Shares of Inc. (STMP) were trading up +14.78 or +16.73 percent to $103.12 per share in Tuesday’s premarket after the company announced record results for its first quarter yesterday after the market close. closed at $88.34 per share, up +3.97 or +4.71 percent in Monday’s regular trading session.

Founded in 1996, El Segundo, California based was originally started under the name of Stampmaster by Jim McDermott, Jeff Green and Ari Engelberg.
The company was one of the first authorized by the U.S. Postal Service to beta test and introduce postage services on the Internet. The company received private financing from several investors in 1998 and 1999 including former U.S. Postmaster General, Marvin Runyon. In June of 1999, went public raising $55 million and had a second offering six months later. In August of the same year, the Postal Service granted the company permission to sell their services nationwide.

More recently, the company acquired a number of Internet shipping and postage companies including ShipStation, Shipworks and last year, acquired Endicia, which offers DYMP Stamps brand and PictureItPostage. had approximately 465,000 registered customers in 2013 and is the leader in Internet based mailing and shipping services. reported a first quarter profit of $13.2 million or $0.71 per share compared to a loss of -$970,000 or -$0.06 per share in last year’s first quarter. With the exclusion of stock based compensation expense, non-recurring expenses and other adjustments, non-GAAP income came to $32.0 million or $1.72 per share compared to non-GAAP first quarter 2015 income of $12.2 million or $0.72 per share, an increase of +139 percent. Total revenue for the quarter was $81.8 million, an increase of +86 percent over 2015’s first quarter. The analyst consensus was for the company to report earnings of $0.25 per share on revenue of $76.1 million.

Ken McBride,’s Chairman and Chief Executive Officer stated in the company’s press release that, “We made significant progress in the integration of Endicia and we began to realize synergies with that business. In addition, we experienced continued strong performance within our traditional SOHO, enterprise and high volume shipping businesses, as well as with our prior acquisitions of ShipStation and ShipWorks. As a result of the across-the-board strength we generated record top and bottom line performance, and we achieved record outcomes in several metrics such as paid customers, average revenue per paid customer, and total postage printed. With the expected continued strength in all areas of our businesses, we increased our 2016 guidance today.”

In light of the company’s record first quarter earnings results, now forecast  full year 2016 revenue to be in a range of $310 to $330 million, which compares to a previous guidance of $290 to $310 million. Net income per fully-diluted share on a non-GAAP basis is expected to be in a range of $6.00 to $6.50, which compares to a previous guidance of $5.00 to $5.50 per fully-diluted share. Investors are clearly showing their approval in this morning’s premarket, with the stock climbing more than $15 per share before the market open.

Other News About STMP

Edited Transcript of STMP earnings conference call or presentation 9-May-16 9:00pm GMT

Transcript of last night’s conference call with CEO Ken McBride and Kyle Huebner, Chief Financial Officer.

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Published on May 10, 2016
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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