The 10-second takeaway
For the quarter ended March 31 (Q1), Stamps.com beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins expanded, net margins contracted.
Stamps.com booked revenue of $32.1 million. The four analysts polled by S&P Capital IQ expected to see revenue of $30.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $28.3 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 $0.57. The four earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. Non-GAAP EPS of $0.57 for Q1 were 68% higher than the prior-year quarter's $0.34 per share. GAAP EPS of $0.49 for Q1 were 48% lower than the prior-year quarter's $0.95 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 76.2%, 190 basis points better than the prior-year quarter. Operating margin was 24.3%, 870 basis points better than the prior-year quarter. Net margin was 24.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $30.7 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $126.3 million. The average EPS estimate is $1.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 180 members out of 197 rating the stock outperform, and 17 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Stamps.com a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stamps.com is buy, with an average price target of $32.13.
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