Stamps.com stock soars more than 65% Thursday

The jump is a stark difference from last year’s crash when its stock dropped almost 50 percent in one day.

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Stamps.com-shares-up-by-65%-on-Thursday

This same time last year Stamps.com stock crashed more than 50 percent in a single day. It wasn’t the only time Stamps.com experienced volatility in its stocks. The same thing happened in May 2019, when shares fell over 60 percent. The news was quite different this past Thursday as shares for the internet-based shipping and mail service soared more than 65 percent.

Stamps.com stock rallied after its quarterly earnings surpassed expectations. The company’s fourth-quarter revenue was $160.9 million and showed an adjusted profit of $2.12 a share. Analysts had previously expected $1.03 per share with $144 million in revenue.

Last year’s February crash was due to an announcement by Stamps.com that it would no longer partner with the U.S. Postal Service. After rebounding, stocks fell again just three months later. In October 2019, Stamps.com announced a strategic partnership with UPS.

Stamps.com CEO, Ken McBride, recently stated that its customers can receive shipping discounts up to 55 percent on UPS’s standard rates. He further noted that it “drives the value proposition of our service offerings, empowers our customers by offering them more choice and control over their shipping needs.”

Stamps.com is now raising its earnings guidance for this fiscal year. It now anticipates shares for its full-year earnings to range between $4 per share and $5 per share. Previous estimates were set at $3.24.

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