Stamps.com, Inc. (STMP) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $29.03 million in the quarter, against a net loss of $0.07 million in the last year period. On the other hand, adjusted net income for the quarter stood at $49.22 million, or $2.73 a share compared with $28.14 million or $1.57 a share, a year ago.
Revenue during the quarter surged 51.55 percent to $105.90 million from $69.88 million in the previous year period. Gross margin for the quarter expanded 196 basis points over the previous year period to 83.09 percent. Operating margin for the quarter period stood at positive 39.14 percent as compared to a negative 1.43 percent for the previous year period.
Operating income for the quarter was $41.44 million, compared with an operating loss of $1 million in the previous year period.
However, the adjusted operating income for the quarter stood at $54.64 million compared to $29.12 million in the prior year period. At the same time, adjusted operating margin improved 992 basis points in the quarter to 51.60 percent from 41.67 percent in the last year period.
"We were very pleased with our fourth quarter and fiscal 2016 performance," said Ken McBride, Stamps.com's chairman and chief executive officer. "This was another exceptional year for Stamps.com with strong execution in all of our business areas. During 2016 we continued to see the benefits from our 2014 acquisitions of ShipStation and ShipWorks, and we successfully integrated and realized synergies from our 2015 acquisition of Endicia. During 2016 we completed our acquisition of ShippingEasy and began the integration of that exciting new business as well. Across all of our products and services, we are realizing synergies in sales and marketing, operations, customer service, and product development, and we believe that we have built a strong platform for pursuing all of our target customers. We are very excited about our opportunities in 2017 and beyond."
For financial year 2017, Stamps.com, Inc. forecasts revenue to be in the range of $400 million to $425 million. It projects net income to be in the range of $79.80 million to $91.80 million. It expects diluted earnings per share to be in the range of $4.20 to $5.10. It expects diluted earnings per share to be in the range of $6 to $7 on adjusted basis for the same period.
Debt comes down
Stamps.com, Inc. has recorded a decline in total debt over the last one year. It stood at $147.35 million as on Dec. 31, 2016, down 8.83 percent or $14.27 million from $161.62 million on Dec. 31, 2015. Total debt was 24.15 percent of total assets as on Dec. 31, 2016, compared with 30.57 percent on Dec. 31, 2015. Debt to equity ratio was at 0.40 as on Dec. 31, 2016, down from 0.68 as on Dec. 31, 2015.
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