(STMP) Beats Second Quarter Forecasts by $0.60, Shares Soar

Shares of the Inc. (STMP) were trading up +5.16 or +6.48 percent to $86.00 per share after the company announced second quarter earnings yesterday after the market close. The company beat analyst estimates for both earnings and revenue by a wide margin. stock closed at $80.84, up +1.30 or +1.63 percent in Thursday’s regular trading session.

Stock Analysis

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. 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.

The company offers a wide range of U.S. Postal Service mailing and shipping solutions, including First Class Mail, Priority Mail, Priority Express Mail, Parcel Select and Media Mail among others.’s services include PC postage software, NetStamp, shipping and other mailing labels, postage scales and other mail related products. In addition to the brand, the company also sells services and products under the Enidicia, ShipStation, ShipWorks and ShippingEasy brands to approximately 650 thousand customers. reported second quarter net income of $14.3 million, or $0.79 per share versus a loss of -$0.64 per share in the same period one year ago. After adjusting for stock options and other expenses, non-GAAP earnings per share came to $1.94 compared to $0.97 last year, an increase of +100 percent. posted revenue of $84 million for the quarter.

Adjusted EBITDA came to $38.2 million, an increase of +116 percent from 2015’s second quarter. The analyst consensus was for the company to report earnings of $1.34 per share on revenue of $73.2 million.

Ken McBride,’s Chairman and Chief Executive Officer noted in the company’s press release that, “The acquisition of ShippingEasy will further accelerate's ongoing investments in shipping technology for e-commerce driven package shipping, the fastest growing segment within the mailing and shipping space. Our investments across all our companies in the areas of sales and marketing, customer service, product development and technology innovation have led to growth in packages shipped by our customers, which in turn have contributed to our great financial performance. Based on our outstanding results and the continued strength in our businesses, we increased our 2016 guidance today.”

For the full 2016 year, the company is currently forecasting revenue to be in the range of $320 million to $345 million, which compares to a previous guidance of $310 million to $330 million. GAAP net income per fully diluted share is currently expected to be in the range of $2.50 to $3.00. With the exclusion of stock based compensation expense and other related expenses, non-GAAP adjusted income per fully diluted share is expected to be in the range of $7.00 to $7.50. The company had previously forecast $6.00 to $6.50 per diluted share.

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Published on Jul 29, 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 2020. Content published with author's permission.

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