K. Liu's Week in Review

Stamps.com (STMP) stole the show this week as shares basically doubled following the release of the company’s Q4 ’19 results. As noted in our recap, Strong Results and Guidance Remove Major Overhang, the big surprise was management’s outlook for growth in FY ’20 when many, us included, had assumed newly negotiated terms between the United States Postal Service (USPS) and its reseller partners would present a headwind to growth over a multi-year horizon.

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Strong Quarter and Outlook Remove Major Overhang

Stamps.com’s (STMP) Q4 ’19 results reflected another big beat, although the upside was not particularly surprising from our perspective given the read-through from the United States Postal Service’s (USPS) peak season performance. Management’s initial outlook for FY ’20 was quite unexpected, however, and far better than we dared to hope.

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K. Liu's Week in Review

The United States Postal Service (USPS) reported its fiscal Q1 ’20 results this week for the quarter ending December 31, 2019. Accompanying the news was monthly trial balance data for December, which revealed a 20.4% Y/Y increase in PC Postage revenue and a 10.1% Y/Y increase for the quarter.

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