Why Shares Soared

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of online postage provider (NASDAQ: STMP  ) surged 24% today after its quarterly results and guidance.

So what: The stock has slumped a bit in 2013 on concerns over slowing growth, but today's first-quarter results -- adjusted EPS spiked 38% on a 13.5% revenue increase -- and upbeat full-year guidance naturally eases some of those worries. In fact, hit its highest level of total paid customers -- and added its largest number of new paid customers -- during the quarter, giving investors plenty of good vibes about the company's prospects going forward.

Now what: Management now sees full-year adjusted EPS of $1.95-$2.15 on revenue of $125 million $135 million, nicely above its prior view of $1.75-$1.95, and $120 million-$130 million. "[I]n summary, our Core PC Postage business model of recurring revenue and high gross mergers is demonstrating continued growth and operating margin expansion," . "We are seeing record setting performances across many of our financial and key customer metrics." With the stock blasting through its 52-week high today, and trading at a still-lofty price-to-sales of 3.5, however, I'd wait for some of the excitement to fade before buying into that bull talk.

Interested in more info on Add it to your watchlist.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2387862, ~/Articles/ArticleHandler.aspx, 9/30/2016 7:57:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
STMP $94.51 Up +0.96 +1.03% CAPS Rating: ****