Stamps.com (STMP) Tops Q1 EPS by 16c, Revenues Beat; Lowers FY19 EPS/Revenue Guidance

Stamps.com (NASDAQ: STMP) reported Q1 EPS of $1.23, $0.16 better than the analyst estimate of $1.07. Revenue for the quarter came in at $136 million versus the consensus estimate of $126.06 million.

GUIDANCE:

Stamps.com sees FY2019 EPS of $3.35-$4.85, versus the consensus of $5.43. Stamps.com sees FY2019 revenue of $510-560 million, versus the consensus of $554.76 million.

For fiscal year 2019, the Company currently expects its GAAP financial outlook to be as follows:

• We expect total revenue to be in a range of approximately $510 million to $560 million; this compares to previous guidance of $540 million to $570 million.
• We expect GAAP net income to be in a range of approximately $21 million to $45 million; this compares to previous guidance of $55 million to $69 million.
• We expect GAAP net income per fully diluted share to be in a range of approximately $1.15 to $2.56; this compares to previous guidance of $2.86 to $3.76.
• We expect our 2019 effective tax rate to be 40.0%; this compares to previous guidance of 30.0%.

The revision to our guidance is principally the result of potential short and long term adverse amendments, renegotiations, changes, or termination of certain contracts between the USPS and certain of our strategic partners who are part of the USPS’s reseller program, that we have recently become aware of, and which will be discussed further on our conference call later today. See also below under "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995.

The above GAAP amounts, adjusted as detailed below, result in the following non-GAAP financial outlook:

• We expect non-GAAP adjusted EBITDA to be in a range of approximately $110 million to $150 million; this compares to previous guidance of $145 million to $165 million.
• We expect non-GAAP adjusted income per fully diluted share to be in a range of $3.35 to $4.85; this compares to previous guidance of $5.15 to $6.15.

Detailed Discussion of our Business Outlook

As noted above, for 2019, the Company currently expects total revenue to be in a range of approximately $510 million to $560 million; this compares to previous guidance of $540 million to $570 million.

Also, for 2019, the Company currently expects GAAP net income to be in a range of approximately $21 million to $45 million; this compares to previous guidance of $55 million to $69 million.

The expected GAAP net income range includes depreciation and amortization expense of approximately $28 million, stock-based compensation expense of approximately $45 million, interest and other expense, net of approximately $2 million, and income tax expense of approximately $14 million to $30 million. Excluding the depreciation and amortization expense, stock-based compensation expense, interest and other expense, net and income tax expense, we expect non-GAAP adjusted EBITDA to be in a range of approximately $110 million to $150 million; this compares to previous guidance of $145 million to $165 million.

For earnings history and earnings-related data on Stamps.com (STMP) click here.

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