Pitney Bowes Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Pitney Bowes (NYSE:PBI) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Pitney Bowes provides mail processing equipment and integrated mail solutions, including postage meters and office supplies.

Pitney Bowes Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 51 cents per share, a decline of 16.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 53 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 51 cents during the last month. Analysts are projecting profit to rise by 11.5% versus last year to $2.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 47 cents per share versus a mean estimate of profit of 48 cents per share. In the second quarter, the company beat estimates by one cent.

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A Look Back: In the third quarter, profit fell 55.7% to $76.5 million (38 cents a share) from $172.8 million (85 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.5% to $1.22 billion from $1.3 billion.

Here’s how Pitney Bowes traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

pbi

Stock Price Performance: Between October 29, 2012 and January 25, 2013, the stock price fell $2.20 (-15.3%), from $14.33 to $12.13. The stock price saw one of its best stretches over the last year between December 28, 2012 and January 10, 2013, when shares rose for nine straight days, increasing 14.5% (+$1.51) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 8.7% (-$1.33) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 3.7% in revenue from the year-earlier quarter to $1.29 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 6.5% in the fourth quarter of the last fiscal year, 5.1% in first quarter and 5.2% in the second quarter and then fell again in the third quarter.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 1.3% in the second quarter and then again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.99 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)