The 10-second takeaway
For the quarter ended June 30 (Q2), 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 expanded significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Stamps.com reported revenue of $32.1 million. The three analysts polled by S&P Capital IQ expected to see a top line of $31.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $28.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.60. The three earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. Non-GAAP EPS of $0.60 for Q2 were 50% higher than the prior-year quarter's $0.40 per share. GAAP EPS of $0.53 for Q2 were 56% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 77.9%, 140 basis points better than the prior-year quarter. Operating margin was 26.6%, 600 basis points better than the prior-year quarter. Net margin was 26.8%, 580 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $31.9 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $129.5 million. The average EPS estimate is $2.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 182 members out of 201 rating the stock outperform, and 19 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Stamps.com a green thumbs-up, and one give it a red thumbs-down.
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