Stamps.com Inc (STMP) has reported an 150.32 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $33.14 million, or $1.82 a share in the quarter, compared with $13.24 million, or $0.71 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $33.25 million, or $1.83 a share compared with $21.12 million or $1.13 a share, a year ago. Revenue during the quarter grew 28.35 percent to $105.04 million from $81.84 million in the previous year period. Gross margin for the quarter expanded 98 basis points over the previous year period to 83.11 percent. Total expenses were 67.01 percent of quarterly revenues, down from 72.85 percent for the same period last year. This has led to an improvement of 584 basis points in operating margin to 32.99 percent.
Operating income for the quarter was $34.65 million, compared with $22.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $50.01 million compared to $33.61 million in the prior year period. At the same time, adjusted operating margin improved 654 basis points in the quarter to 47.61 percent from 41.07 percent in the last year period.
“We are very pleased with our continued strong revenue and earnings growth this quarter,” said Ken McBride, Stamps.com's chairman and chief executive officer. “In addition to our overall revenue and earnings growth, during the first quarter we reached our highest level of paid customers, we saw continued strong growth in our shipping business areas, and we experienced strong contributions from all of our subsidiaries. We remain very excited about our future prospects and, combined with our first quarter performance, led us to increase our guidance for 2017.”
Stamps.Com projects revenue to be in the range of $405 million to $430 million for financial year 2017. For fiscal year 2017, Stamps.Com expects net income to be in the range of $89.80 million to $103.30 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.78 to $5.69. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $7 to $8 on adjusted basis.
Debt comes down
Stamps.com Inc has recorded a decline in total debt over the last one year. It stood at $135.90 million as on Mar. 31, 2017, down 15.42 percent or $24.78 million from $160.68 million on Mar. 31, 2016. Total debt was 21.99 percent of total assets as on Mar. 31, 2017, compared with 28.98 percent on Mar. 31, 2016. Debt to equity ratio was at 0.34 as on Mar. 31, 2017, down from 0.49 as on Mar. 31, 2016. Interest coverage ratio improved to 39.37 for the quarter from 24.28 for the same period last year.
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