Stamps.com Shares Rise on Profit
Stamps.com Inc. shares climbed Thursday, boosted by strong fourth-quarter results reflecting a surge in the company’s core PC Postage business.
Stock of the Los Angeles-based company rose $2.58, or 16.5%, to $18.18 in Nasdaq trading -- a 52-week high surpassing the previous high of $17.75 set Sept. 13.
Stamps.com reported fourth-quarter net income of $1.5 million, or 6 cents a share. That contrasts with the previous year’s loss of $2.7 million, or 12 cents.
Revenue rose 83% to $11.7 million from $6.4 million, driven partly by the PC Postage business, which allows customers to buy and print U.S. Postal Service postage anywhere with a personal computer and Internet connection.
A new version of its PC Postage software is slated for release in the second quarter.
In addition, the company saw its subscription service and online store revenue rise significantly from a year earlier.
“We topped off a great year for Stamps.com with a terrific fourth quarter that was ahead of expectations for our business,” Chief Executive Ken McBride said.
Stamps.com boosted its 2005 outlook. The company lifted its revenue forecast to $48.5 million from a previous estimate of $43.5 million. Earnings are now expected to come in at 26 cents a share, which is 10 cents better than the previous forecast.
For the first quarter, Stamps.com expects to earn 5 cents a share and post revenue of $11 million.
Still up in the air is the company’s PhotoStamps service, which allowed customers to print photographs or graphics on valid U.S. postage.
The Postal Service suspended the trial program in September for evaluation after pranksters reportedly were able to print stamps with infamous characters such as Unabomber Theodore J. Kaczynski.
