The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Pitney Bowes missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Pitney Bowes logged revenue of $1.22 billion. The four analysts polled by S&P Capital IQ wanted to see a top line of $1.26 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $1.30 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 $0.47. The four earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.38 for Q3 were 55% lower than the prior-year quarter's $0.85 per share. (The prior-year quarter included $0.30 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 49.3%, 160 basis points worse than the prior-year quarter. Operating margin was 13.3%, 170 basis points worse than the prior-year quarter. Net margin was 6.3%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $5.04 billion. The average EPS estimate is $1.99.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 285 members out of 341 rating the stock outperform, and 56 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Pitney Bowes a green thumbs-up, and 12 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 $16.20.
Can your retirement portfolio provide you with enough income to last? You'll need more than Pitney Bowes. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Pitney Bowes to My Watchlist.