Stamps.com Makes Its Mark With Incredible Q4 Results
Fourth-quarter financial results were a big step forward for Stamps.com, as the stock was practically cut in half after the firm ended its exclusive deal with the U.S. Postal Service last year.
Stamps.com Inc. (NASDAQ: STMP) released its fourth-quarter financial results after the markets closed on Wednesday. This was a big step forward for Stamps.com as the stock was practically cut in half after the firm ended its exclusive deal with the U.S. Postal Service last year. Overall this quarter seems to be proving Stamps.com is back on the right track.
For the quarter, the firm said that it had $2.12 in earnings per share (EPS) and $160.9 million in revenue. Analysts were calling for $1.03 in EPS and $144.68 million in revenue. The same period of last year had $3.73 in EPS and $170.23 million in revenue.
Fourth-quarter Mailing and Shipping revenue (which includes service, product and insurance revenue but excludes Customized Postage and Other revenue) was $156.0 million, down 6% year over year. Separately, Customized Postage revenue was up 2% to $4.9 million.
This quarter was also somewhat influenced by Stamps.com’s recent UPS partnership forged in late 2019. The UPS partnership will allow the firm to offer attractive UPS package discounts to customers and, as a result, drive more customers and shipping volume to UPS.
Ken McBride, board chair and chief executive, commented:
In 2019, we continued to make significant strides towards our goal of being the leading worldwide multi-carrier e-commerce software company. We continued to invest in our products and partnerships throughout 2019 to address the significant opportunities in the U.S. and internationally. We are very excited about our business prospects in 2020 and beyond.
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Stamps.com stock traded up about 52% to $145.49 on Thursday, in a 52-week range of $32.54 to $203.87. The consensus price target is $94.00.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
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