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Stamps.com News: STMP Stock Plummets on Lowered Guidance

STMP dropped its EPS and revenue guidance for 2019

Stamps.com news about it lowering its guidance has STMP stock falling hard on Thursday.Stamps.com News: STMP Stock Plummets on Lowered Guidance

The guidance update from Stamps.com (NASDAQ:STMP) starts off horribly with it now expecting earnings per share between $3.35 and $4.85 for the full year of 2019. It was previously expecting earnings per share for the year to range from $5.15 to $6.15. That’s a major blow to STMP stock as analysts are estimating earnings per share of $5.43 for the year.

The Stamps.com news also includes a new revenue guidance for the full year of 2019. This has the company expecting revenue between $510 million to $560 million. The company was previously expecting revenue for the year to range from $540 million to $570 million. Wall Street is looking for revenue of $554.76 million for the period.

The reason behind the Stamps.com news today has to do with its relationship with the United States Postal Service (USPS). The company notes that it has been made aware of “amendments, renegotiations, changes, or termination of certain contracts” with the USPS that will have an adverse effect on its business.

All of this comes just a few months after Stamps.com announced that it was ending its exclusive deal with the USPS. The company’s stock was hit hard back then too as it lowered its outlook as a result of the decision. To give an idea as to how bad this is for STMP stock, the company’s earnings per share for the full year of 2018 was $11.78.

STMP stock was down 53% as of noon Thursday and is down 44% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/05/stamps-com-news-hits-stmp-stock-hard/.

©2019 InvestorPlace Media, LLC