Stamps.com shares surge 30% on earnings, forecast beat
Company has rebounded from losing exclusive USPS contract
Shares of Stamps.com rebounded with a vengeance on Wednesday after quarterly results and the company's outlook topped Wall Street expectations.
Shares surged 30 percent in after-hours trading to $125.
| Ticker | Security | Last | Change | Change % |
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| stmp | NO DATA AVAILABLE | - | - | - |
Stamps.com lost an exclusive contract a year ago with the United States Postal Service that cut shares in half in a single day.
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Stamps.com earned $20.3 million, or $1.13 a share, compared with $42.7 million.
Adjusted for one-time items, earnings per share were $2.12. Revenue fell 5 percent.
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The results topped expectations, although were down from year ago comparisons.
The end of that contract meant, Stamps.com could partner with other carriers.
“In 2019, we continued to make significant strides towards our goal of being the leading worldwide multi-carrier e-commerce software company," said Ken McBride, Stamps.com’s Chairman and CEO. "We are very excited about our business prospects in 2020 and beyond.”
Stamps.com projected 2020 earnings of $2.08 to $2.92 a share, or $4 to $5 on an adjusted basis, on revenue of $570 million to $600 million.
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Analysts on average were expecting 2020 adjusted earnings of $3.24 a share on sales of $537.7 million, according to FactSet.