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Pitney Bowes' (PBI) Q4 Earnings Miss, Revenues Down Y/Y

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Pitney Bowes Inc. (PBI - Free Report) is one of the largest providers of mail processing equipment and integrated mail solutions across the world. It offers a full suite of equipment, supplies, software and services for end-to-end mainstream solutions, which enables its customers to optimize the flow of physical and electronic mail, documents and packages across their operations.

Sustained weak performance in its software and North American Mailing business has been hurting PBI’s performance for the past few quarters. Though the company has adopted multiple measures to boost profits at the software segment, it has not yet produced tangible results. In addition, an uncertain global economic environment is likely to further hurt the production mail and software businesses, marring the company’s top-line performance. Also, incremental marketing expense related to the advertising campaign is proving to be a drag on the financial performance.

Despite the negatives, PBI’s steady transformation process over the past three years to create long-term flexibility for investment reinstates hope. Over the past few quarters, the company’s Digital Commerce Solutions (“DCS”) has acted as a major profit churner, driving top-line performance.

In the last four trailing quarters, PBI has missed earnings estimates thrice resulting in an average negative surprise of 8.2%.

Currently, PBI has a Zacks Rank #4 (Sell) but that could change following its fourth-quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

We have highlighted some of the key details from the just-released announcement below.

Earnings: For the fourth-quarter 2016 the company reported adjusted earnings per share of 53 cents which missed the Zacks Consensus Estimate of 58 cents.

Pitney Bowes Inc. Price and EPS Surprise

Pitney Bowes Inc. Price and EPS Surprise | Pitney Bowes Inc. Quote

Revenues: Revenues came in at $887 million, which decreased 5% on a constant currency basis year over year.

Key Stats: During the fourth quarter of 2016, the company paid $35 million in dividends and used $14 million in restructuring payments. For full-year 2016, it made share repurchases worth $197 million, paid $141 million in dividends and incurred $65 million in restructuring payments.

Stock Price: PBI shares were down 2.9% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

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