Pitney Bowes Inc. (PBI - Free Report) reported second-quarter 2020 adjusted earnings of 4 cents per share, beating the Zacks Consensus Estimate by 100%. Nevertheless, the figure declined 78.9% year over year.
Total revenues improved 6% year over year to $837.5 million. Adjusting for foreign currency exchange and market exit impact, revenue growth was 7% year over year.
Quarter in Detail
Commerce Services increased 26% (up 26% after adjusted for currency) from the year-ago quarter’s figure to $516.6 million. Global Ecommerce revenues rose 41% to $398.5 million, while Presort Services of $118.1 million declined 8% year over year.
Global Ecommerce revenues benefited from strong growth in Domestic Parcel Delivery services and Digital Delivery volumes. Presort Services revenues declined due to sluggishness in marketing Mail and First Class volumes. However, Mail Flats and Bound Printed Matter volumes grew year over year and limited the decline.
Sending Technology Solutions declined 15% year over year (down 15% after adjusted for currency) to $320.9 million. The downside was caused by COVID-19 induced supply chain disruptions and lower equipment sales. However, higher business service revenues, driven by increased usage of shipping offerings and capabilities, limited the decline.
Adjusted EBITDA Details
In the second quarter, adjusted EBITDA declined 25.8% from the year-ago quarter’s figure to $89.5 million.
Segment EBITDA fell 18% from the year-ago quarter’s figure to $131.9 million. Segment EBIT slumped 21% from the year-ago quarter’s figure to $98 million.
Balance Sheet & Cash Flow
As of Jun 30, 2020, cash and cash equivalents (including short-term investments) were $1.02 billion compared with $730.3 million as of Mar 31, 2020.
As of Jun 30, 2020, long-term debt (including current portion) was $2.72 billion, compared with $2.63 billion as of Mar 31, 2020.
Cash flow generated was $153.1 million compared with $66.3 million of net cash used in operations in the previous quarter. Free cash flow was $148.4 million compared with free cash outflow of $47.4 million in the prior quarter.
In the reported quarter, Pitney Bowes paid out dividends worth $9 million.
The company incurred expenses of $5 million under restructuring payments and capital expenditures worth $34 million in the reported quarter.
Guidance
The company refrained from providing guidance for 2020 due to uncertainties related to the COVID-19 outbreak and its negative impact on consumer demand and supply chains.
Zacks Rank & Stocks to Consider
Currently, Pitney Bowes carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , Asure Software, Inc. (ASUR - Free Report) and Analog Devices (ADI). While both Dropbox and Asure Software sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dropbox, Asure Software, and Analog Devices are scheduled to report earnings on Aug 6, Aug 10 and Aug 19, respectively.
Long-term earnings growth rate of Dropbox, Asure Software, and Analog Devices is pegged at 32.51%, 14% and 13.33%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Pitney Bowes Inc. (PBI - Free Report) reported second-quarter 2020 adjusted earnings of 4 cents per share, beating the Zacks Consensus Estimate by 100%. Nevertheless, the figure declined 78.9% year over year.
Total revenues improved 6% year over year to $837.5 million. Adjusting for foreign currency exchange and market exit impact, revenue growth was 7% year over year.
Quarter in Detail
Commerce Services increased 26% (up 26% after adjusted for currency) from the year-ago quarter’s figure to $516.6 million. Global Ecommerce revenues rose 41% to $398.5 million, while Presort Services of $118.1 million declined 8% year over year.
Global Ecommerce revenues benefited from strong growth in Domestic Parcel Delivery services and Digital Delivery volumes. Presort Services revenues declined due to sluggishness in marketing Mail and First Class volumes. However, Mail Flats and Bound Printed Matter volumes grew year over year and limited the decline.
Sending Technology Solutions declined 15% year over year (down 15% after adjusted for currency) to $320.9 million. The downside was caused by COVID-19 induced supply chain disruptions and lower equipment sales. However, higher business service revenues, driven by increased usage of shipping offerings and capabilities, limited the decline.
Adjusted EBITDA Details
In the second quarter, adjusted EBITDA declined 25.8% from the year-ago quarter’s figure to $89.5 million.
Segment EBITDA fell 18% from the year-ago quarter’s figure to $131.9 million. Segment EBIT slumped 21% from the year-ago quarter’s figure to $98 million.
Balance Sheet & Cash Flow
As of Jun 30, 2020, cash and cash equivalents (including short-term investments) were $1.02 billion compared with $730.3 million as of Mar 31, 2020.
As of Jun 30, 2020, long-term debt (including current portion) was $2.72 billion, compared with $2.63 billion as of Mar 31, 2020.
Cash flow generated was $153.1 million compared with $66.3 million of net cash used in operations in the previous quarter. Free cash flow was $148.4 million compared with free cash outflow of $47.4 million in the prior quarter.
In the reported quarter, Pitney Bowes paid out dividends worth $9 million.
The company incurred expenses of $5 million under restructuring payments and capital expenditures worth $34 million in the reported quarter.
Guidance
The company refrained from providing guidance for 2020 due to uncertainties related to the COVID-19 outbreak and its negative impact on consumer demand and supply chains.
Zacks Rank & Stocks to Consider
Currently, Pitney Bowes carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Dropbox (DBX - Free Report) , Asure Software, Inc. (ASUR - Free Report) and Analog Devices (ADI). While both Dropbox and Asure Software sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dropbox, Asure Software, and Analog Devices are scheduled to report earnings on Aug 6, Aug 10 and Aug 19, respectively.
Long-term earnings growth rate of Dropbox, Asure Software, and Analog Devices is pegged at 32.51%, 14% and 13.33%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on PBI - FREE
Get the latest research report on ASUR - FREE
Get the latest research report on DBX - FREE