Pitney Bowes Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Pitney Bowes Inc. (NYSE:PBI) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the business equipment company rose to $172.8 million (85 cents per share) vs. $88.9 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 94.3% from the year earlier quarter.

Revenue: Fell 3.4% to $1.3 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PBI reported adjusted net income of 69 cents per share. By that measure, the company beat the mean estimate of 54 cents per share. It fell short of the average revenue estimate of $1.33 billion.

Quoting Management: Commenting on the quarter, Chairman, President and CEO Murray D. Martin said, “Our revenue performance this quarter reflects the impact of sustained economic uncertainty on most of our global customer base. This weakness is affecting the buying confidence of some of our customers. As a result, they have become more cautious and are delaying making capital and lease commitments. We also believe that some of the conflicting perceptions and media reports about the mailing industry are having an adverse impact on parts of the business. “We are pleased, however, that despite the impact of these challenging conditions on revenue, we have been able to improve the profitability of our company as a result of our ongoing Strategic Transformation initiatives.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 64.4% and in the first quarter, the figure rose 9.2%.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 52 cents per share.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 1.3% to $1.31 billion in the second quarter from the year earlier.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the fourth quarter has reached 64 cents per share, up from 61 cents. At $2.21 per share, the average estimate for the fiscal year has fallen from $2.26 ninety days ago.

Competitors to Watch: Xerox Corporation (NYSE:XRX), ACCO Brands Corporation (NYSE:ABD), Staples (NASDAQ:SPLS), OfficeMax (NYSE:OMX), Office Depot (NYSE:ODP), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), UPS (NYSE:UPS) and FedEx (NYSE:FDX).

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(Source: Xignite Financials)