In its fourth quarter results Stamps.com posted earnings of 61 cents a share, beating analyst estimates of 54 cents a share by 7 cents. The company missed revenue estimates, however, posting revenue of $32.4 million, compared to analyst estimates of $34 million.
Stamps.com forecasts earnings between $2.10 and $2.50 a share for the full year 2014, while analysts expect $2.48 a share for the year. The company expects revenue between $125 million and $140 million, compared to analyst estimates of $141.8 million for the year.
TheStreet Ratings team rates STAMPS.COM INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STAMPS.COM INC (STMP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 26.19% and other important driving factors, this stock has surged by 46.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STMP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- STAMPS.COM INC has improved earnings per share by 26.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STAMPS.COM INC increased its bottom line by earning $2.29 versus $1.68 in the prior year. This year, the market expects an improvement in earnings ($2.32 versus $2.29).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 25.6% when compared to the same quarter one year prior, rising from $6.98 million to $8.76 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 16.7%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- STMP has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.72, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: STMP Ratings Report