Stamps.com Drops on 2021 Uncertainty Tied to Pandemic

Stamps.com's report topped analyst estimates, but uncertainty about the economic environment in 2021 led the company to withhold guidance.
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Shares of Stamps.com  (STMP) - Get Report dropped Thursday after the online postage provider reported fourth-quarter results that topped estimates but withheld guidance due to the economic uncertainty stemming from the pandemic. 

The El Segundo, Calif., mailing- and shipping-solutions provider $2.36 a share in the quarter on a GAAP basis, more than double the $1.13 of a year earlier.

On an adjusted basis, Stamps.com earned $4.13 a share, nearly double the $2.12 a share of the year earlier. 

Revenue rose 28% to $206 million from $160.9 million.

Analysts surveyed by FactSet were expecting earnings of $2.62 a share on revenue of $189 million. 

Still and all, Stamps.com shares at last check tumbled 19% to $212.14.

In the quarter and year, "we set new record financial and business metrics, demonstrating the strength and relevance of our best-in-class global multi-carrier e-commerce technology solutions," Chief Executive Ken McBride said in a statement.

But the strong increases in e-commerce that were present in 2020 due to the COVID-19 pandemic aren't expected to be as strong as economies start to reopen.

"Despite those financial benefits, there is substantial uncertainty in 2021 from the myriad of macroeconomic factors associated with the ongoing pandemic, and the resulting effect on global e-commerce," the company said in its release.  

The company reported that its total paid customer base rose by 266,000 to 1.02 million in the fourth quarter compared with a year earlier.

Mailing and shipping made up all the company's revenue in the quarter after the U.S. Postal Service terminated its customized postage program in June. Customized postage brought in nearly $5 million in revenue a year earlier.