Stamps.com (Nasdaq: STMP ) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Stamps.com beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins increased.
Stamps.com reported revenue of $29.1 million. The four analysts polled by S&P Capital IQ predicted net sales of $28.4 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $24.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The three earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.42 for Q3 were 40% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.7%, 50 basis points worse than the prior-year quarter. Operating margin was 24.4%, 660 basis points better than the prior-year quarter. Net margin was 24.0%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30.6 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $115.5 million. The average EPS estimate is $1.51.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 174 members out of 190 rating the stock outperform, and 16 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Stamps.com a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stamps.com is buy, with an average price target of $32.50.
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