Pitney Bowes Inc. Earnings: Beats Expectations

S&P 500 (NYSE:SPY) component Pitney Bowes Inc. (NYSE:PBI) reported net income above Wall Street’s expectations for the fourth quarter. Pitney Bowes provides mail processing equipment and integrated mail solutions, including postage meters and office supplies.

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Pitney Bowes Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the business equipment company rose to $257.5 million ($1.28 per share) vs. $63 million (31 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Fell 6.5% to $1.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Pitney Bowes Inc. reported adjusted net income of 97 cents per share. By that measure, the company beat the mean estimate of 60 cents per share. It fell short of the average revenue estimate of $1.37 billion.

Quoting Management: Commenting on the quarter and the year, Chairman, President and CEO Murray D. Martin noted, “We are pleased that we were able to achieve our original earnings objective and exceed our cash flow target despite a business environment that remained unexpectedly challenging during 2011. Our Strategic Transformation program enabled us to streamline our business processes and improve the way we interact with our customers. Our cost structure is now more variable and efficient, and as a result, we achieved EBIT margin improvement for the year on our adjusted results.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the third quarter, net income rose 94.3% while the figure climbed 64.4% in the second quarter and 9.2% in the first quarter from the year earlier.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 69 cents versus a mean estimate of net income of 54 cents per share.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 3.4% to $1.3 billion from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at 49 cents per share, up from 49 cents. The average estimate for the fiscal year is $2.31 per share, a rise from $2.30 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com