Stamps.com Beats Up on Analysts Yet Again

Stamps.com (Nasdaq: STMP  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stamps.com beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.

Margins improved across the board.

Revenue details
Stamps.com notched revenue of $27.2 million. The two analysts polled by S&P Capital IQ anticipated sales of $26.6 million. GAAP sales were 20% higher than the prior-year quarter's $22.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.35. The two earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share on the same basis. GAAP EPS were $0.81 for Q4 versus -$0.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 74.4%, 320 basis points better than the prior-year quarter. Operating margin was 16.8%, 1,670 basis points better than the prior-year quarter. Net margin was 49.2%, 5,040 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $26.8 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $111.7 million. The average EPS estimate is $1.33.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 199 rating the stock outperform, and 17 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Stamps.com a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stamps.com is outperform, with an average price target of $28.38.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Stamps.com on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Stamps.com to My Watchlist.