S&P 500 (NYSE:SPY) component Pitney Bowes (NYSE:PBI) will unveil its latest earnings tomorrow, Thursday, August 2, 2012. 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 net income of 50 cents per share, a decline of 3.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 52 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 50 cents during the last month. Analysts are projecting profit to rise by 8% compared to last year’s $2.08.
Past Earnings Performance: Last quarter, the company reported profit of 52 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.
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A Look Back: In the first quarter, profit rose 83.9% to $158.7 million (79 cents a share) from $86.3 million (42 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 5.1% to $1.26 billion from $1.32 billion.
Stock Price Performance: Between May 2, 2012 and July 31, 2012, the stock price fell $4.41 (-24.82%), from $17.77 to $13.36. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011, when shares rose for six straight days, increasing 7.7% (+$1.46) over that span. It saw one of its worst periods between May 3, 2012 and May 15, 2012 when shares fell for nine straight days, dropping 22.5% (-$3.90) over that span.
Wall St. Revenue Expectations: Analysts are projecting a decline of 4.6% in revenue from the year-earlier quarter to $1.25 billion.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 94.3% in the third quarter of the last fiscal year and more than fourfold in the fourth quarter of the last fiscal year before increasing again in the first quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 3.4% in the third quarter of the last fiscal year and 6.5% in fourth quarter of the last fiscal year before falling again in the first quarter.
Analyst Ratings: There are mostly holds on the stock among the limited number of analysts surveyed with two hold ratings.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.08 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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