Pitney Bowes Inc. Earnings: Revenues Fall, Bringing Down Profit

S&P 500 (NYSE:SPY) component Pitney Bowes Inc. (NYSE:PBI) posted a decrease in profit as revenue declined. Pitney Bowes provides mail processing equipment and integrated mail solutions, including postage meters and office supplies.

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Pitney Bowes Earnings Cheat Sheet for the Second Quarter

Results: Net income for Pitney Bowes Inc. fell to $99.6 million (50 cents per share) vs. $100.9 million (49 cents per share) a year earlier. This is a decline of 1.3% from the year-earlier quarter.

Revenue: Fell 99.9% to $1.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pitney Bowes Inc. fell in line with the mean analyst estimate of 50 cents per share. It fell short of the average revenue estimate of $1.29 billion.

Quoting Management: Commenting on the quarter, Chairman, President and CEO Murray D. Martin said, “During the quarter, excluding the impact of changes in currency, Software and Mail Services revenue grew. Additionally within our SMB business, International Mailing revenue grew year-over-year.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 83.9% from the year earlier, while the figure increased more than fourfold in the fourth quarter of the last fiscal year, 94.3% in the third quarter of the last fiscal year and 64.4% in the second quarter of the last fiscal year.

Revenue has fallen for the last four quarters. Revenue declined 5.1% to $1.26 billion in the first quarter. The figure fell 6.5% in the fourth quarter of the last fiscal year from the year earlier and dropped 3.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 52 cents per share to 49 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.08 per share, down from $2.12 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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