Pitney Bowes Inc. Earnings: Crushes Profit Estimate, Light on Revs

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

Results: Net income for Pitney Bowes Inc. rose to $158.6 million (79 cents per share) vs. $86.3 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 83.7% from the year-earlier quarter.

Revenue: Fell 1.7% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pitney Bowes Inc. reported adjusted net income of 63 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $1.29 billion.

Quoting Management: Commenting on the quarter, Chairman, President and CEO Murray D. Martin said, “During the quarter we reached several key milestones in the areas of software and digital solutions that mark our progress in expanding our value proposition beyond physical mail. As a result, we have decided to increase our investments to bring these new solutions to market more quickly to take advantage of emerging and growing opportunities.”

Key Stats:
The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose more than fourfold and in the third quarter of the last fiscal year, the figure rose 94.3%.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by one cent in the fourth quarter of the last fiscal year and by 15 cents in the third quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the fourth quarter of the last fiscal year, revenue declined 6.5% to $1.34 billion while the figure fell 3.4% in the third quarter of the last fiscal year from the year earlier.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 52 cents per share from 51 cents. For the fiscal year, the average estimate has moved down from $2.17 a share to $2.12 over the last ninety days.

Competitors to Watch: Ricoh Company Ltd., Xerox Corporation, ACCO Brands Corporation, Smith Corona Corporation, Innovative Impact Design, Inc., Gunther International Ltd., and Oce N.V.

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

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