Stamps.com Ends Partnerships With U.S. Postal Service; Stock Plunges

(RTTNews) - Stamps.com Inc. (STMP) said an exclusive deal with the U.S. Postal Service will not be renewed.

STMP closed Thursday's regular trading at $198.08, down $4.05 or 2.00 percent. In the after-hours trade, the stock further dropped $96.08 or 48.51 percent.

"Our customers can no longer survive on just the USPS, and we don't see that as a viable option for the next five years," Chief Executive Kenneth McBride said in the conference call. "So basically that was our premise, is like, no matter what, this company can no longer be exclusive given the trends in the shipping market."

Stamps.com reported that its GAAP net income for the fourth quarter 2018 was $42.7 million and $2.30 per share compared to $40.2 million and $2.15 per share last year.

Total revenue was $170.2 million, up 29% compared to the fourth quarter of 2017.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.90 per share and revenues of $159.99 million. Analysts' estimates typically exclude special items.