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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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. The Motley Fool has no position in any of the stocks mentioned. 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.