Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Jumped Today

By Anders Bylund - Feb 22, 2018 at 3:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Great e-commerce sales in the holiday quarter resulted in fantastic results for this shipping and postage expert, too.

What happened

Shares of (STMP) soared as much as 16.7% higher on Thursday, following the release of solid fourth-quarter results. At 2 p.m. EST, the stock had settled down to a smaller but still impressive 11.7% gain.

So what

The shipping software and online postage specialist saw top-line revenue rise 25% year over year, landing at $132.5 million. Adjusted earnings surged 71% higher over the same period, stopping at $4.68 per diluted share. Analysts would have settled for earnings of $2.72 per share on sales in the neighborhood of $120.3 million. Looking ahead, the company also set full-year guidance for 2018 comfortably ahead of the current Street views across the board.

Young man smiling over a few shipping containers, arrayed around his laptop.

Image source: Getty Images.

Now what enjoyed a fantastic holiday season for online retailers. The company supports printing shipping labels for the USPS and 35 other shipping services, including several of the mailing solutions (AMZN 3.58%) runs on its own. So a good e-commerce season is great news for

Moreover, the company is only dipping its toes into international waters so far. Modestly sized service launches in Canada, Australia, and the U.K. should serve as test markets for a worldwide expansion over the next few years. This way,'s addressable market will grow from a $90 billion domestic opportunity to a $230 billion worldwide market.

It's not surprising to see shares soaring on these good tidings. The stock has now gained a market-beating 64% over the last year with a five-year return of 730%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$116.46 (3.58%) $4.02 Inc. Stock Quote Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.