Business Insider Jumps 60%, Puts Post Office Worries to Bed

imageStock Markets4 hours ago (Feb 20, 2020 02:03PM ET)

(C) Reuters.

By Kim Khan – Investors were writing off (NASDAQ:STMP) after it ended its exclusive partnership with the U.S. Postal Service last year. Now they’re diving back in as the company’s plan of working with other shipping providers is showing big results.

Shares soared 60% in afternoon trading Thursday. reported earnings after the bell yesterday, posting a profit of $2.12 per share, more than double the $1.03 per share analysts polled by predicted.

Revenue came in at $160.9 million, topping the consensus forecast of $144.68 million. cited strength in its global initiatives and said paid customers reached 750,000 in the fourth quarter, the most ever. A partnership with United Parcel Service (NYSE:UPS) started in the first quarter, which could bring even stronger numbers.

Looking ahead, the company predicted full-year earnings of around $4 to $5 per share, excluding items, well ahead of the S&P Capital IQ consensus of $3.31 per share. It guided revenue to $570 million to $600 million in 2020, compared with expectations of $521.3 million.

While the huge jump today is undoubtedly welcome news for the company, it also raises some questions about how well is communicating with investors and the analyst community.

“This seems like something of an expectations-management failure for a $12 billion public company,” Axios’ Felix Salmon tweeted. Jumps 60%, Puts Post Office Worries to Bed

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