Stamps.com Shares Rally Even Higher Than Its Guidance

Stamps.com reported that its core Mailing and Shipping revenue was up by 45% to $46.8 million, and total revenue was up 41% to $48.4 million for its second quarter. Operating net income was $16.8 million, or $0.97 per share.

The company further showed that Mailing and Shipping gross margin was 80.8%, PhotoStamps gross margin was 17.8% and total gross margin was 79.5%.

For 2015 guidance, Stamps.com sees revenues in a range of $170 million to $190 million, versus a prior guidance range of $165 million to $185 million. The company also projected that non-GAAP net income will be in a range of $3.10 to $3.50 per share, higher than the $2.55 to $2.95 per share guidance it had previously given.

The long and short of the matter is that this is now 20% higher earnings per share guidance, based on the mid-points of the new and old ranges. Shareholders took the 20% higher earnings guidance and rewarded the stock with a 28% gain to $85.00 in mid-Friday trading. That is now a full $10 higher than the prior analyst consensus price target.

Stamps.com also formally eclipsed its 52-week high with a print of $85.36 on the day. Its prior 52-week range was listed as $31.04 to $85.24. The stock now has a market cap of $1.4 billion. With about three hours until the close, Stamps.com had traded almost 1.2 million shares, versus an average daily volume of about 175,000 shares.

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Ken McBride, chairman and CEO if Stamps.com, said:

We are pleased with our continued strong revenue and earnings growth this quarter. We achieved record performance across multiple financial and customer metrics including total revenue, core mailing and shipping revenue, non-GAAP earnings per share, paid customers and average revenue per paid customer. In addition, we saw continued growth across all of our business segments and we experienced positive contributions from our ShipStation and ShipWorks subsidiaries. We remain excited about our future prospects which led us to increase our guidance for 2015.