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USPS Financial Results Portend Strong Q4 for Stamps.com

The USPS reported its fiscal first quarter 2019 results this past Friday, February 8, 2019. Most notably, Shipping and Packages revenue increased 8.7% Y/Y on volume growth of 5.4%.

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Stamps.com (STMP)Kevin LiuFebruary 11, 2019stmp, e-commerce, logistics, PC Postage
K. Liu’s Week in Review

This past week started with a bang as long-time stalwart Ultimate Software (ULTI) announced its sale to a group of private equity firms led by Hellman & Friedman for $331.50 per share in cash.

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Software IndustryKevin LiuFebruary 8, 2019ABT, ULTI, MANH, PAYC, DATA, ZEN, BLKB, CDAY, DSY, FEYE, FTNT, NEWR, PCTY, RDWR, ATEN, EGAN, EIGI, FSCT, NUAN, PRO, RPD, PEGA, TYL, CBLK
A Stock with Room to Run

Based on Stamps.com’s (STMP) last closing price of $187.44, shares currently trade at 11.8x and 17.6x our FY ’19 adjusted EBITDA and non-GAAP EPS estimates, respectively.

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Stamps.com (STMP)Kevin LiuFebruary 4, 2019stamps.com, stmp, e-commerce, logistics
A Secular Growth Story

Given its association with postage stamps, those less familiar with STMP may find the company’s high historical growth rates surprising.

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Stamps.com (STMP)Kevin LiuFebruary 4, 2019stamps.com, stmp, e-commerce, logistics
A Solution for Every Segment

While perhaps best known for its namesake service, STMP’s acquisition strategy has yielded a portfolio of highly regarded products catering to shippers at various stages of maturity.

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Stamps.com (STMP)Kevin LiuFebruary 4, 2019stamps.com, stmp, e-commerce, logistics
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