What went down, just went back up -- big time.
One year ago, nearly to the day, online postage seller Stamps.com (NASDAQ:STMP) saw its stock cut by more than half after announcing it was walking away from its exclusive deal to sell postage for parcels and mail shipped via the U.S. Postal Service. Today, Stamps.com stock is up by more than half (55.3% as of 11:50 a.m. EST) on news that things are starting to work out well for it.
Stamps.com stomped on Wall Street predictions of $1.03 per share in earnings, on sales of $144.7 million for its fiscal Q4 2019. Although sales did decline year over year (down 5%), the company's $160.9 million in quarterly sales sailed past Street estimates.
Profits per diluted share fell by more than half, but at $1.13 per share, likewise beat expectations quite handily.
Best of all, though, is what Stamps.com had to say about the future. Moving slowly (but now, it seems, surely), Stamps.com has fulfilled its promise to expand its business with new partners after leaving the USPS a year ago. In the company's post-earnings conference call, CEO Ken McBride confirmed that Stamps.com now has both a "great new partnership with UPS" and "new, long-term agreements [with] the USPS."
This news is what investors have been waiting for, to prove that Stamps.com can grow again.
With these partnerships in place, Stamps.com is now guiding to generate fiscal 2020 sales between $570 million to $600 million. (Wall Street was looking for less than $540 million.) And management thinks that non-GAAP (adjusted) profit will be "in the range of $4 to $5." (Wall Street was only hoping for $3.23.)
Translation: The check's no longer just in the mail. Stamps.com is growing again, and its shareholders couldn't be more pleased.