The 10-second takeaway
For the quarter ended March 31 (Q1), Stamps.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Stamps.com logged revenue of $28.3 million. The four analysts polled by S&P Capital IQ anticipated sales of $27.0 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $22.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The four earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.95 for Q1 were 428% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.3%, 160 basis points better than the prior-year quarter. Operating margin was 15.6%, 430 basis points better than the prior-year quarter. Net margin was 57.8%, 4,610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $28.1 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $115.2 million. The average EPS estimate is $1.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 177 members out of 195 rating the stock outperform, and 18 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Stamps.com a green thumbs-up, and four 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 $34.00.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Stamps.com on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Stamps.com to My Watchlist.
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.