Stamps.com (STMP) Beats Second Quarter Forecasts by $0.60, Shares Soar
Shares of the Stamps.com 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. Stamps.com stock closed at $80.84, up +1.30 or +1.63 percent in Thursday’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.
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. Stamps.com’s services include PC postage software, NetStamp, shipping and other mailing labels, postage scales and other mail related products. In addition to the Stamps.com brand, the company also sells services and products under the Enidicia, ShipStation, ShipWorks and ShippingEasy brands to approximately 650 thousand customers.
Stamps.com 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. Stamps.com 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, Stamps.com’s Chairman and Chief Executive Officer noted in the company’s press release that, “The acquisition of ShippingEasy will further accelerate Stamps.com'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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