Stamps.com (STMP) - Get Report soared Thursday after the online postage-sales giant delivered a stellar earnings report that laid to rest fears last year's divorce from the United States Postal Service would lead to the company's undoing.
Stamps.com's stock price leaped 56.61% to $149.50 a share after the El Segundo, Calif-based company blew past analysts' earnings estimates and produced a sizable beat on revenue as well.
Stamps.com reported fourth-quarter earnings of $2.12 a share. While down from $3.73 a share a year ago in the wake of the company's decision to end its exclusive partnership with the USPS, it was more than double the 93 cents a share predicted by analysts surveyed by Zacks Investment Research.
That represented an earnings surprise of nearly 128% for the online-postage and shipping software company, according to Zacks.
Stamps.com also generated nearly $161 million in revenue during the quarter that ended on Dec. 31, down from the $170.23 million the company reported a year ago but 12.7% higher than the estimate of analysts polled by Zacks.
Helping assuage investor concerns, Stamps.com has inked a new, non-exclusive deal with the USPS and is now expecting to see revenue expand again in 2020. Stamps.com is forecasting 2020 revenue of $570 million to $600 million, compared with revenue of just under $572 million in 2019.
The online-postage sales and shipping software company saw its stock price hit a low of $33.54 a share last spring after the end of its exclusive deal with the USPS, only to steadily rise over the course of 2019, topping $81 a share in early January.
Strong financial results have led to another spike over the past 10 days in Stamps.com's stock price, including Thursday's big run higher.