Stamps.Com Stung by Earning, Forecast

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Shares in Stamps.com Inc. plummeted more than 15 percent Friday to a two-year low after the company reported meager earnings and dropped its 2007 forecast.


The Los Angeles retailer of online stamps reported first quarter net income of $3.1 million (14 cents per share), a 9 percent dip from $3.4 million (14 cents) for the same period a year earlier. The company cited increased marketing costs combined with lower-than-expected sales.


Sales for the Los Angeles-based company fell 3 percent to $20 million, stung by an 18 percent dip in its previously red-hot PhotoStamps product, which allows customers to print personalized photo stamps.


The company also said it anticipates 2007 earnings of 67 cents to 77 cents per share far below Wall Street’s estimates of 86 cents per share.


Shares in Stamps.com were down $2.36 per share, or 15 percent, to $12.98 in afternoon trading Friday on the Nasdaq.

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