Drops 50 Percent after Reports Predict Massive Declines

1323 (NASDAQ: STMP) was one of the market’s biggest losers today. The company, which focuses on offering intern-based mailing shipping solutions in the U.S., ended up dropping 45 percent in after-hours trading on Thursday after the company revealed that its profits and revenues were expected to nosedive drastically in 2019.

In an official announcement, said that it expected its earnings to be cut in half and sales to drop from 2018. Most troubling for investors, the company didn’t provide any specific reasons for this anticipated decline.

As mentioned in the company’s recent Q4 financial results, fourth-quarter profits were at $42.7 million, or $2.30 per share. Overall revenues were at $170.2 million, which has increased from $132.5 million it was a year ago. So far, financial results have beaten average analyst estimates and should be a strong sign going forward of the company’s health.

However, the online mail-supplies company went on to say that they expected their adjusted earnings to be only $5.15 to $6.15 a share based on projected revenues of $540 million to $570 million – less than half of what it should be. For some reason or another, the seems to be aware of something that they haven’t revealed yet to investors, which has caused this massive selloff in the company’s stock.

“We are pleased with our fourth quarter and fiscal 2018 financial performance,” said Ken McBride,’s Chairman and CEO. “We achieved strong financial results driven by exceptional execution in our shipping business and we completed our strategic acquisition of MetaPack which has positioned as the leading global e-commerce shipping software company. We are well positioned to successfully compete on a global scale with a focus on driving long-term value for our customers, partners, and shareholders.”

The announced financial statements don’t mention anything out of the ordinary, with most of the report seeming to indicate that everything should be fine, asides from the shockingly low forecast. The report did mention, however, that company executives “plan to discuss certain strategic items during its conference call that impact our business outlook for 2019.”

Overall, stock prices have been steadily plunging as of this article, dropping from 45 percent to 50 percent within a span of 30 minutes. Investors are anticipating what will be said in the conference call with fearful anticipation.

Stamps Company Profile Inc., incorporated on January 9, 1998, is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the, Endicia, ShipStation, ShipWorks and ShippingEasy brands.

It operates through the Internet Mailing and Shipping Services segment. Under the and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS.

USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. Its solutions support a range of USPS mail classes, including First Class Mail, Priority Mail, Priority Mail Express, Media Mail, Parcel Select and others. –Reuters