Pitney Bowes Earnings: Here’s Why Investors are Not Excited Now

Pitney Bowes Inc. (NYSE:PBI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11.23%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Pitney Bowes Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 19.23% to $0.42 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Decreased 7.06% to $1.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pitney Bowes Inc. reported adjusted EPS income of $0.42 per share. By that measure, the company missed the mean analyst estimate of $0.44. It missed the average revenue estimate of $1.2 billion.

Quoting Management: President and Chief Executive Officer, Marc Lautenbach, commented, “We are taking a number of actions in support of the long-term health and growth of our business. While the results for the quarter were mixed, we are seeing progress in key elements of the business. We continued to experience a moderation in the decline of recurring revenue streams in our SMB group, as well as growth in both our Production Mail and Mail Services segments. Mail Services revenue grew because of increased cross-border shipments, related to the early stages of implementation of our partnership with ebay. We had weaker revenue and EBIT results than expected in our Software segment due in part to continued global economic uncertainty.”

Key Stats (on next page)…

Revenue decreased 1.67% from $1.19 billion in the previous quarter. EPS decreased 25% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.45. For the current year, the average estimate has moved up from a profit of $1.91 to a profit of $1.94 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)