S&P 500 (NYSE:SPY) component Pitney Bowes (NYSE:PBI) will unveil its latest earnings on Tuesday, October 30, 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 estimate of analysts is for net income of 48 cents per share, a decline of 30.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 48 cents during the last month. For the year, analysts are projecting profit of $2.03 per share, a decline of 10.2% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 50 cents per share against a mean estimate of profit of 49 cents per share.
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Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had risen 71 cents (5.3%), from $13.35 to $14.06. The stock price saw one of its best stretches over the last year between September 4, 2012 and September 14, 2012, when shares rose for nine straight days, increasing 15.8% (+$2.08) 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 3.1% in revenue from the year-earlier quarter to $1.26 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.98 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.
The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 94.3% in the third quarter of the last fiscal year, more than fourfold in the fourth quarter of the last fiscal year and 83.9% in the first quarter before declining in the second quarter.
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 3.4% in the third quarter of the last fiscal year, 6.5% in fourth quarter of the last fiscal year and 5.1% in the first quarter and then fell again in the second quarter.
Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.
A Look Back: In the second quarter, profit fell 1.3% to $99.6 million (50 cents a share) from $100.9 million (49 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.2% to $1.25 billion from $1.31 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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