(STMP - Snapshot Report
is a Zacks #1 Rank (Strong Buy) and has had several straight earnings blowouts.
Stamps.com Inc. provides Internet-based postage solutions. Its
products and services include the United States Postal Service
(USPS) approved PC Postage Service that enables users to print
electronic stamps directly onto envelopes, plain paper, or labels
using personal computer, printer, and Internet connection; and
PhotoStamps, a patented form of postage, which allows consumers to
turn digital photos, designs, or images into valid United States
Seven Straight Blowouts
Blowout earnings reports have become the norm for STMP. Over the
last four reports, the company has topped the Zacks Consensus
Estimate by an average of 110% or $0.23 per report! That is some
heavy duty out performance.
Prior to the most recent report, the beats ranged between 28% -
125% and most moved the stock significantly higher. The June 2011
quarter saw a 116% beat and 21% move in the stock. The September
2011 quarter had a 30% beat and a 36% move in the stock.
STMP Recently Reported Earnings
On February 9, 2012 the company reported revenue of $27 million
in line with estimates and up from the $23 million posted in the
addition, earnings per
share came in at $0.81 up from $0.02 posted a year ago and $0.59
ahead of the Zacks Consensus Estimate. Surprisingly, the stock
traded off by a little more than 5% following earnings.
Earnings Estimates Bumped Up
Following the most recent earnings report, analysts bumped up
their earnings estimates for 2012. The Zacks Consensus Estimate
for 2012 EPS moved from $1.11 in January 2012 to the current
level of $1.13. Not much of a move given the significant beat.
STMP carries a reasonable valuation given large beats. With a
forward earnings multiple of 24x, STMP trades a bit higher than
the industry average of 10.5x. Price to book and price to sales
metrics also carry similar premiums to the industry average.
Despite the solid beat in early February, STMP trended lower
throughout the rest of the month. A recent reversal has taken
place and the stock has traded through two key support levels
indicating a strong run is likely. STMP is a Zacks #1 Rank
Brian Bolan is the Aggressive Growth Stock Strategist
Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor