Stamps.com Inc. (NASDAQ: STMP) is having an incredibly rough start to the trading session in the pre-market hours this morning after the company reported earnnigs. Unfortunately, the company slashed guidance, leading to comcerns among investors. Today, we’ll talk about:
- The financial results and guidance;
- what we’re seeing from STMP stock as a result; and
- what we’ll be watching for ahead.
STMP Stock Falls Hard On Guidance
As mentioned above, Stamps.com is having a great day in the market today after the company announced its financial results. While the company beat earnings expectations, guidance proved to be a cause for concern.
During the most recent quarter, STMP reported adjusted earnings in the amount of $1.23. That figure beat analyst expectations of $1.11 per share. Revenue also topped analyst expectations. During the quarter revenue came in at $136 million with analysts expecting $127.2 million.
While the earnings report proved to be positive, the forward-looking picture wasn’t as great. The company said that it is expecting for full year earnings to come in between $3.35 per share and $4.85 per share. Revenue for the period is expected to come in between $510 million and $560 million.
That’s a far cry from previous guidance. STMP previously said that it expected earnings to come in between $5.15 per share and $6.15 per share. Analysts were expecting full year earnings of $5.43 per share on revenue of around $555 million.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Stamps.com, the news was anything but positive.
After all, guidance being cut nearly in half is concerning for investors. So, it’s not surprising to see that upset investors are driving the stock down in the market this morning.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:35), STMP is trading at $44.80 per share after a loss of $38.59 per share or 46.28% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on STMP. In particular, we’re interested in following the story surrounding the company’s work to recover its revenue and earnings potential, returning value to investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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