The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stamps.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins improved across the board.
Stamps.com notched revenue of $27.2 million. The two analysts polled by S&P Capital IQ anticipated sales of $26.6 million. GAAP sales were 20% higher than the prior-year quarter's $22.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.35. The two earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share on the same basis. GAAP EPS were $0.81 for Q4 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.4%, 320 basis points better than the prior-year quarter. Operating margin was 16.8%, 1,670 basis points better than the prior-year quarter. Net margin was 49.2%, 5,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.8 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $111.7 million. The average EPS estimate is $1.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 199 rating the stock outperform, and 17 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Stamps.com a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stamps.com is outperform, with an average price target of $28.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.