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Pitney Bowes, HP &TagG to Develop Novel IPDS Controller
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Pitney Bowes Inc. (PBI - Free Report) has entered into an agreement with TagG and HP to develop a new native IPDS (Intelligent Printer Data Stream) Controller for the Pitney Bowes IntelliJet and HP PageWide Web Press printing systems. The upgraded IPDS will help it deliver higher-value communications, and serve transactional print and mail clients to leverage AFP (Advanced Function Presentation) workflows.
This model will be sold as part of Pitney Bowes’ IntelliJet 20 HD series for transactional print and mail operations.
Last year, Pitney Bowes and HP had launched HDNA technology (which doubles print resolution to an industry-leading 2400 nozzles per inch) on PageWide Web Presses and IntelliJet Printers.
Despite the company’s regular upgrades to its software, deteriorating market conditions in the technology industry, along with the lack of execution of some strategic business decisions, have affected performance of the Software business.
Pitney Bowes Inc. Price, Consensus and EPS Surprise
Also, the sluggish global economic environment is expected to hamper production mail and Software businesses in the near term, limiting the company’s growth momentum.
Further, Pitney Bowes has been experiencing a surge in its operating expenses on account of ERP implementation in the U.S. and higher marketing expenses in relation to aggressive advertising and marketing strategies.
In fact, for more than a year now, Pitney Bowes has had a bearish run on the bourse. Shares of the company recorded an average negative return of 22.2% over the past year, significantly wider than the Zacks categorized Office Automation & Equipment industry’s decline of 2.5%.
Coming to the earnings front, Pitney Bowes has had an equally depressing run. With an average negative surprise of 10.3%, the company has missed estimates in each of the trailing four quarters. With a host of factors curbing the company’s growth, and recent analyst estimate revisions being decidedly negative, we doubt if it can stage a comeback anytime soon.
Also, the company has been witnessing some activity on the earnings estimate revision front lately, with estimates moving south. Over the past month, the company has witnessed three downward estimate revisions versus none upward. This has led the Zacks Consensus Estimate for 2017 earnings to trend down from $1.91 to $1.77, reflecting a decrease of 7.3%.
In its recently-released fourth-quarter earnings report, foreign currency headwinds and loss of revenues from previously-exited operations in Mexico, South Africa and five markets in Asia resulted in a 5.3% decline in revenues. Sustained weak performance in its software and North American Mailing business remains a huge burden for the company.
Going forward, the company believes that rising capital expenditure on the Enterprise Resource Planning (“ERP”) program will continue to exert pressure on margins in the near term, till their benefits materialize. Also, this Zacks Rank #4 (Sell) stock’s cross-border business renders it vulnerable to currency volatility, which remains a risk.
Stocks to Consider
Better-ranked stocks in the broader computer & technology sector include Applied Optoelectronics, Inc. (AAOI - Free Report) , Barracuda Networks, Inc. and Guidance Software, Inc. . While Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy), Barracuda Networks and Guidance Software carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Optoelectronics, Inc. has a whopping average earnings beat of 106.7%, led by two huge beats in the trailing four quarters.
Barracuda Networks company has a striking earnings surprise history. It surpassed estimates strongly in each of the trailing four quarters, with an extraordinary average positive surprise of 475%.
Guidance Software also has an impressive earnings history. The company has beaten estimates in each of the four trailing quarters, with an average surprise of 35.8%.
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Pitney Bowes, HP &TagG to Develop Novel IPDS Controller
Pitney Bowes Inc. (PBI - Free Report) has entered into an agreement with TagG and HP to develop a new native IPDS (Intelligent Printer Data Stream) Controller for the Pitney Bowes IntelliJet and HP PageWide Web Press printing systems. The upgraded IPDS will help it deliver higher-value communications, and serve transactional print and mail clients to leverage AFP (Advanced Function Presentation) workflows.
This model will be sold as part of Pitney Bowes’ IntelliJet 20 HD series for transactional print and mail operations.
Last year, Pitney Bowes and HP had launched HDNA technology (which doubles print resolution to an industry-leading 2400 nozzles per inch) on PageWide Web Presses and IntelliJet Printers.
Despite the company’s regular upgrades to its software, deteriorating market conditions in the technology industry, along with the lack of execution of some strategic business decisions, have affected performance of the Software business.
Pitney Bowes Inc. Price, Consensus and EPS Surprise
Pitney Bowes Inc. Price, Consensus and EPS Surprise | Pitney Bowes Inc. Quote
Also, the sluggish global economic environment is expected to hamper production mail and Software businesses in the near term, limiting the company’s growth momentum.
Further, Pitney Bowes has been experiencing a surge in its operating expenses on account of ERP implementation in the U.S. and higher marketing expenses in relation to aggressive advertising and marketing strategies.
In fact, for more than a year now, Pitney Bowes has had a bearish run on the bourse. Shares of the company recorded an average negative return of 22.2% over the past year, significantly wider than the Zacks categorized Office Automation & Equipment industry’s decline of 2.5%.
Coming to the earnings front, Pitney Bowes has had an equally depressing run. With an average negative surprise of 10.3%, the company has missed estimates in each of the trailing four quarters. With a host of factors curbing the company’s growth, and recent analyst estimate revisions being decidedly negative, we doubt if it can stage a comeback anytime soon.
Also, the company has been witnessing some activity on the earnings estimate revision front lately, with estimates moving south. Over the past month, the company has witnessed three downward estimate revisions versus none upward. This has led the Zacks Consensus Estimate for 2017 earnings to trend down from $1.91 to $1.77, reflecting a decrease of 7.3%.
In its recently-released fourth-quarter earnings report, foreign currency headwinds and loss of revenues from previously-exited operations in Mexico, South Africa and five markets in Asia resulted in a 5.3% decline in revenues. Sustained weak performance in its software and North American Mailing business remains a huge burden for the company.
Going forward, the company believes that rising capital expenditure on the Enterprise Resource Planning (“ERP”) program will continue to exert pressure on margins in the near term, till their benefits materialize. Also, this Zacks Rank #4 (Sell) stock’s cross-border business renders it vulnerable to currency volatility, which remains a risk.
Stocks to Consider
Better-ranked stocks in the broader computer & technology sector include Applied Optoelectronics, Inc. (AAOI - Free Report) , Barracuda Networks, Inc. and Guidance Software, Inc. . While Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy), Barracuda Networks and Guidance Software carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Optoelectronics, Inc. has a whopping average earnings beat of 106.7%, led by two huge beats in the trailing four quarters.
Barracuda Networks company has a striking earnings surprise history. It surpassed estimates strongly in each of the trailing four quarters, with an extraordinary average positive surprise of 475%.
Guidance Software also has an impressive earnings history. The company has beaten estimates in each of the four trailing quarters, with an average surprise of 35.8%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>