The 10-second takeaway
For the quarter ended March 31 (Q1), Pitney Bowes missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Pitney Bowes logged revenue of $1.17 billion. The three analysts polled by S&P Capital IQ expected sales of $1.21 billion on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $1.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The four earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. Non-GAAP EPS of $0.42 for Q1 were 19% lower than the prior-year quarter's $0.52 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.) GAAP EPS of $0.33 for Q1 were 58% lower than the prior-year quarter's $0.79 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.5%, 150 basis points worse than the prior-year quarter. Operating margin was 13.4%, 120 basis points worse than the prior-year quarter. Net margin was 5.8%, 680 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $4.88 billion. The average EPS estimate is $1.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 310 members out of 370 rating the stock outperform, and 60 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Pitney Bowes a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pitney Bowes is outperform, with an average price target of $15.80.
Looking for alternatives to Pitney Bowes? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Pitney Bowes to My Watchlist.