Global technology company, Pitney Bowes Inc. (PBI - Free Report) will launch the “Commerce Complete for Retail” platform at the upcoming ShopTalk 2017, one of the most noteworthy commerce events to be held in Las Vegas. Commerce Complete for Retail is part of Pitney Bowes' Commerce Cloud, an innovative platform acting as the foundation for most of the company’s newly-launched products and solutions.
Commerce Complete for Retail
Touted as the most “capable and scalable platform”, Commerce Complete for Retail will provide a comprehensive set of technology, tools and services for retailers to ensure sustainable growth and profitability. Pitney Bowes believes that it will create a unified commerce platform, offering a host of features including intelligent and optimized shipping capabilities. The platform will further unlock retailer’s access to a broad range of cross-border customers and marketplaces.
Commerce Complete for Retail takes care of multiple services, including marketing, payments, delivery, tracking location, shipping and so on. These added benefits will allow retailers to slash their operational costs and boost customer satisfaction. As an increasing number of shoppers are switching to online shopping, retailers have been facing challenges of keeping up with the desired quality of service. This, in turn, puts significant pressure on their margins.
Further, Pitney Bowes’ 2016 Global Online Shopping Study reveals that 66% of shoppers made cross-border purchases and this figure is expected to climb over the next few years. The changing times require retailers to have “must-have capabilities” that can fortify their global footprint at reasonable costs. The company is confident that Commerce Complete for Retail will help retailers turn their shops into distribution points and optimize margin performance.
Pitney Bowes has been constantly introducing products on the back of its Commerce Cloud platform. Encouragingly, this is proving conducive to the company’s top-line performance. Overall, Pitney Bowes believes that the platform will enhance its digital capabilities and web-based solutions, and act as a growth catalyst, going forward.
Despite strategic product launch, Pitney Bowes has been facing formidable execution issues that have severely maligned its performance. Over the last six months, the stock has had a disappointing run on the bourse, having plunged 23.5%, in sharp contrast to the Zacks categorized Office Automation & Equipment industry’s average positive return of 4.0%. The company has a dismal earnings surprise history, with an average negative surprise of 10.3%, missing estimates each time in the trailing four quarters.
Further, the company’s earnings estimates also moved south over the past couple of months, which indicates bearish analyst sentiment for the stock. It has seen three downward estimate revisions compared to none upward, over the past 60 days. This has led the Zacks Consensus Estimate for 2017 to move up from $1.91 to $1.76. Pitney Bowes continues to witness precipitous decline in sales and margins on account of sluggish end markets.
Amid deteriorating market conditions, escalating operating expenses and major shareholders exiting the stock, we believe this Zacks Rank #4 (Sell) company is unlikely to stage a comeback anytime soon.
Stocks to Consider
Better-ranked stocks in the broader computer & technology sector include Dassault Systemes SA (DASTY - Free Report) , Check Point Software Technologies Ltd. (CHKP - Free Report) and Aspen Technology, Inc. (AZPN - Free Report) . While Dassault sports a Zacks Rank #1 (Strong Buy), Check Point Software and Aspen Technology carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dassault Systemes, a globally recognized leader in CAD/CAM/CAE and PDM II markets, has a striking earnings surprise history for the trailing four quarters, beating estimates all through for an average positive surprise of 11.0%.
Check Point Software is a leading provider of policy-based enterprise security and traffic management solutions. The company has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 6.0%.
Aspen Technology is a recognized expert and leading provider of award-winning process optimization software and services. The company has beaten estimates consistently each time over the trailing four quarters, with an average positive surprise of 20.3%.
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