Stamps.com (STMP) Stock Surges on Record 1Q Earnings, Revenue
Shares of Stamps.com 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. Stamps.com 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 Stamps.com was originally started under the name of Stampmaster by Jim McDermott, Jeff Green and Ari Engelberg.
More recently, the company acquired a number of Internet shipping and postage companies including ShipStation, Shipworks and last year, Stamps.com acquired Endicia, which offers DYMP Stamps brand and PictureItPostage. Stamps.com had approximately 465,000 registered customers in 2013 and is the leader in Internet based mailing and shipping services.
Stamps.com 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, Stamps.com’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, Stamps.com 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.
Tweets on the Street: Stamps.com Takes a Licking; Lessons of Manufacturing Slowdown
Martin Shkreli made comments on Twitter after a negative article on Stamps.com in Seeking Alpha.
Other Stocks in the News
Gap plunges after warning about sales decline, potential streamlining
Shares were down -12 percent in this morning’s premarket.
Allergan profit beats on strong sales of Botox and Restasis
Company board also announced a share buyback program of up to $10 billion.