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Stamps.com (STMP) to Report Q3 Earnings: What's in Store?

Zacks Equity Research

Stamps.com Inc. STMP is set to report third-quarter 2019 results on Nov 7.

The Zacks Consensus Estimate for third-quarter revenues currently stands at $126.1 million, which indicates a decline of 12.1% from the year-ago quarter’s reported figure.

The consensus mark for earnings has remained unchanged at 77 cents over the past 30 days and implies a decline of 72% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 22.5%.

In the last reported quarter, Stamps.com reported adjusted earnings of $1.25 per share that beat the Zacks Consensus Estimate by 30 cents.

Revenues declined 1% year over year to $139 million, which beat the consensus mark of $130 million.

Stamps.com Inc. Price and EPS Surprise

Stamps.com Inc. Price and EPS Surprise

Stamps.com Inc. price-eps-surprise | Stamps.com Inc. Quote

Key Factors to Consider

Stamps.com’s shipping revenues are expected to have been affected by elimination of USPS commission revenues in the to-be-reported quarter. Moreover, lower revenues earned through some resellers may be reflected in shipping revenues.

Further, higher operating expenses associated with shipping-related investments and inclusion of MetaPack, which was acquired by the company in July last year, is likely to have affected operating margins and consequently the bottom line in the to-be-reported quarter.

Additionally, the company’s continued focus on expanding internationally through its low margin Global Advantage Program is expected to have negatively impacted profitability in the to-be-reported quarter.

Key Q3 Developments

On Sep 5, Stamps.com launched a new GlobalPost international shipping service in more than 200 countries and territories with added features like Global Address Verification, Electronic customs form and Instant refunds among others.

What Our Model Says

According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the odds of a positive earnings surprise.

Stamps.com has a Zacks Rank #1 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

iHeartMedia IHRT has an Earnings ESP of +3.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband LBRDK has an Earnings ESP of +5.75% and a Zacks Rank #2.

Twin River Worldwide TRWH has an Earnings ESP of +13.25% and a Zacks Rank #2.

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