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Stamps.com Inc. (STMP +0.00%) announced better-than-expected second-quarter 2018 results on Wednesday after the market closed, helped by growth from both its postage and mailing and shipping businesses. The company also closed on one significant acquisition and announced an agreement to purchase an even larger complementary business.
With shares up more than 8% Thursday in response, let's dig deeper to see what Stamps.com had to say.
IMAGE SOURCE: GETTY IMAGES.
Metric |
Q2 2018 |
Q2 2017 |
Year-Over-Year Growth |
---|---|---|---|
Revenue |
$139.6 |
$116.1 |
20.2% |
GAAP net income |
$45.5 |
$31.0 |
46.8% |
GAAP net income per share |
$2.41 |
$1.71 |
40.9% |
DATA SOURCE: STAMPS.COM.
Stamps.com Chairman and CEO Ken McBride stated:
We were very pleased with our acquisition of MetaPack and with our second quarter performance. Our growth continues to be driven by success in the shipping area of our business. With MetaPack we will be able to accelerate our focus on international expansion, and will be in a much better position to address the global e-commerce shipping industry. We are continuing to execute on our operational and strategic plans and we are excited about our long-term business opportunities.
For the full fiscal-year 2018, Stamps.com reiterated its outlook for revenue to be in the range of $530 million to $560 million, as well as its guidance for adjusted EBITDA of $245 million to $265 million. However, the company also raised its 2018 outlook for adjusted earnings per share to be in the range of $10.15 to $11.15, up from $9.60 to $10.60 previously.
In the end, there was nothing not to like about Stamps.com's second beat-and-raise performance in as many quarters. The company is not only successfully fostering its core shipping and mailing business, but also seeking incremental acquisitive growth on a global scale. And I think the market was right to drive shares close to a new all-time high as a result.