Stamps.com Posts 66% Increase in Profit

Stamps.com Inc., the Playa Vista company that sells postage over the Internet, said third-quarter profit jumped 66% on a 24% increase in revenue.

But the company issued projections for the current year and next that were below Wall Street forecasts, sending shares down $1.66, or 8.7%, to $17.50 in after-hours trading.

Stamps.com earned $4.3 million, or 18 cents a share, compared with $2.6 million, or 11 cents, for the same quarter in 2005. Excluding stock option expenses, the company earned 21 cents a share for the most recent quarter. Revenue grew to $18.9 million from $15.3 million in the year-earlier period.

Analysts polled by Thomson Financial had expected a profit of 19 cents a share, excluding stock option expenses, on $20.8 million in revenue.

Stamps.com said it expected to post a 2006 profit of 64 cents to 67 cents a share, including about $2.7 million in stock-based compensation.

Excluding stock compensation expenses, the company expects a profit of 75 cents to 78 cents a share. Stamps.com expects to post revenue of $82 million to $85 million.

Analysts on average expect a 2006 profit of 78 cents a share, excluding 12 cents a share in stock option expenses, on $87.1 million in revenue.

For 2007, the company predicted earnings of 70 cents to 80 cents a share, including about $2.4 million in stock option expenses. Excluding stock option expenses, Stamps.com expects a profit of 80 cents to 90 cents a share.

Shares of Stamps.com fell 52 cents to $19.16.