Stamps.com (STMP) Wednesday reported a sharp increase in profit for the first quarter, due mainly to a 24 percent increase in revenue and a hefty income tax benefit.
The Los Angeles, California-based company reported first-quarter net profit of $16.36 million or $0.95 per share, compared to $2.68 million or $0.18 per share last year. Earnings for the quarter included an income tax benefit of $11.82 million.
Excluding stock-based compensation expense and non-cash income tax benefit, adjusted net income for the quarter rose to $5.77 million or $0.34 per share from $3.5 million or $0.24 per share in the prior-year quarter. On average, three analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 24 percent to $28.29 million from $22.82 million in the prior-year quarter. Four analysts had a consensus revenue estimate of $27.01 million for the quarter.
Looking ahead, the company expects full-year 2012 earnings to range between $1.80 and $2.00 per share. However, the company increased its adjusted earnings guidance for the full year 2012 to a range of $1.35 to $1.55 per share from the previous estimate of $1.25 to $1.45 per share. Analysts currently expect earnings of $1.37 per share for the year.
Stamps.com now expects revenues for 2012 in the range of $107.5 million to $117.5 million compared to previous estimate of $105 million to $115 million. Analysts currently expect revenues of $113.76 million for the year.
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