Stamps.com jumps more than 50% Thursday, a year after crashing nearly 50% in a single day

Earnings

A Stamps.com promotional image

Source: Stamps.com

There’s volatility and then there’s Stamps.com.

Shares of Stamps.com rallied more than 50% on Thursday after the mailing and shipping services company posted quarterly numbers that blew away analyst expectations.

The company reported an adjusted profit of $2.12 per share for the fourth quarter on revenue of $160.9 million. Analysts polled by Refinitiv expected earnings of $1.03 per share on sales of $144.7 million.

Stamps.com’s stock has experienced high levels of volatility over the past year. The company said in late February 2019 that it was discontinuing its partnership with the U.S. Postal Service. The shares crashed nearly 50% then. However, the stock later rebounded from those losses and in October the company announced a partnership with UPS.

CEO Ken McBride said during a call with analysts on Wednesday that the partnership offers Stamps.com customers discounts of up to 55% on UPS standard shipping rates. The partnership “drives the value proposition of our service offerings, empowers our customers by offering them more choice and control over their shipping needs,” he said.

Stamps.com also issued better-than-expected earnings guidance for fiscal 2020. The company expects full-year earnings per share to range between $4 and $5, well above a FactSet estimate of $3.24.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Products You May Like

Articles You May Like

Social Security’s trust funds at a greater risk for running dry amid pandemic. What that means for your retirement
American Airlines says it’s overstaffed by 20,000 employees for fall schedule
Goldman warns delayed election results this November similar to Bush-Gore could rock the market
A meditation expert shows her stress relief ‘tapping’ exercise which you can do in 2 minutes
The U.S. needs a unified approach to tackle rising coronavirus cases, infectious disease expert says

Leave a Reply

Your email address will not be published. Required fields are marked *