Stamps.com Earnings Preview

Motley Fool Staff
Updated

Watch Stamps.com's (NAS: STMP) earnings report to see whether it can beat analyst expectations for the fourth consecutive quarter. The company will unveil its latest earnings tomorrow. Stamps.com is a provider of Internet-based postage solutions. Its customers use its service to mail and ship a number of mail pieces, including postcards, envelopes, flats, and packages.

What analysts say

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy.

  • Revenue forecasts: On average, analysts predict $22.1 million in revenue this quarter. That would represent a rise of 4.4% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.18 per share.

What our community says
CAPS All-Stars are solidly behind the stock with 94.4% giving it an outperform rating. The community at large agrees with the All-Stars with 92.5% awarding it a rating of outperform. Fools are bullish on Stamps.com and haven't been shy with their opinions lately, logging 102 posts in the past 30 days. Stamps.com's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

72.7%

71.2%

73.4%

72.5%

Operating Margin

11.3%

0.1%

12.5%

(15.2%)

Net Margin

11.7%

(1.2%)

13.2%

4.4%

One final thing: If you want to keep tabs on Stamps.com movements, and for more analysis on the company, make sure you add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time thisarticle was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement