Stamps.com climbs 65% as it beats analysts’ estimates by a significant margin in the Q4 earnings report

Stamps.com climbs 65% as it beats analysts’ estimates by a significant margin in the Q4 earnings report

  • Stamps.com climbs 65% as it beats analysts’ estimates by a significant margin in the Q4 earnings report.
  • Stamps posts $160.9 million in revenue in the fourth quarter versus $144.7 million expected.
  • Stamps makes $2.12 of earnings per share in the fourth quarter versus $1.03 expected.

Stamps.com announced its quarterly performance results on Thursday. Beating the analysts’ estimates by a significant margin, the mailing and shipping company was seen trading remarkably higher in the stock market later in the day.

According to Refinitiv, analysts had expected the company to print $144.7 million in revenue in the fourth quarter. In terms of adjusted profit, they had anticipated $1.03 per share. In its earnings report on Thursday, the company posted a significantly higher $160.9 million in revenue in the recent quarter while its adjusted profit was noted over twice as much as the expectations at $2.12 per share in Q4.

2019 Was A Year Of High Volatility For Stamps.com

2019 was a year of volatility for Stamps.com in the stock market. Following its announcement in February 2019 that it had decided in favor of removing the U.S Postal Service from its list of partners, the company had seen a sharp 50% decline in the financial market. The loss, however, was recovered later in the year. In October 2019, the company declared UPS as its new partner.

CEO Ken McBride appreciated Stamps’ partnership with UPS as it enables the company to offer up to 55% discounts to its valuable customers on standard shipping rates that UPS applies. McBride’s remarks came in an address to analysts on Wednesday. The partnership, he commented, adds value to Stamps’ services as it enables its customers to enjoy a wider range of options to have their individual shipping needs precisely catered.

Following the largely upbeat results for the fourth quarter, the company expressed confidence for future outlook as evident in the optimism of its guidance for fiscal 2020. The company accentuated that it now expects to make $4 to even $5 of earnings per share this year that was reported sharply higher than FactSet’s estimate of $3.24 that was revealed recently.  

Stamps’ Performance In The Stock Market In The Past 14 Months

Following the Q4 earnings report on Thursday, the mailing and shipping company posted a massive 65% increase in the stock market. At the time of writing, the stock is exchanging hands at around $157 per share that marks an almost 100% growth in 2020 so far. The aforementioned growth, however, has only recovered the losses of 2019 when the company opened at $154 in January but closed the year significantly lower at around $80. Stamps is still significantly down as compared to its record high of around $285 in 2018.

By Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

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