The 10-second takeaway
For the quarter ended March 31 (Q1), Pitney Bowes missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Margins improved across the board.
Pitney Bowes booked revenue of $1.26 billion. The three analysts polled by S&P Capital IQ expected revenue of $1.29 billion on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $1.32 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 $0.52. The four earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.79 for Q1 were 88% higher than the prior-year quarter's $0.42 per share. (The prior-year quarter included -$0.01 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 50.0%, 70 basis points better than the prior-year quarter. Operating margin was 14.8%, 60 basis points better than the prior-year quarter. Net margin was 12.6%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $5.24 billion. The average EPS estimate is $2.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 265 members out of 314 rating the stock outperform, and 49 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 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 hold, with an average price target of $19.75.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Pitney Bowes. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Pitney Bowes to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.