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.
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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