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Pitney Bowes (PBI) Q4 Earnings Beat, Revenues Grow 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.

Pitney Bowes’ concerted efforts to transform its business over the past four years are finally beginning to show results. This trend might likely continue for upcoming quarters. Over the past few quarters, the company’s Digital Commerce Solutions (“DCS”) has acted as a major profit churner, driving top-line performance.

However, prolonged softness in the mailing business is likely to prove detrimental to Pitney-Bowes’ growth momentum to some extent. Lower recurring supplies revenues are expected to hurt the mailing business, going forward. In addition, escalating marketing expenses in relation to the ERP implementation program is likely to act as an overhang.

In the last four trailing quarters, PBI has missed earnings estimates thrice resulting in an average negative surprise of 8.6%.

Pitney Bowes Inc. Price, Consensus and EPS Surprise

Currently, PBI has a Zacks Rank #3 (Hold) but that could change following its fourth-quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the announcement below:

Earnings: PBI beats on earnings. Adjusted earnings per share for the quarter came in at 40 cents, ahead of the Zacks Consensus Estimate of 36 cents.

Revenue: Revenues came in at $1,049 million, up an impressive 18% year over year.

Key Stats: During the fourth quarter of 2017, the Digital Commerce Solutions segment grew a striking 86% year over year, driven by robust contribution from Newgistics. During 2017, the company paid $139 million in dividends and used $41 million in restructuring payments. For 2018, the company expects its revenues to grow in the range of 9-13% year over year.

Stock Price: PBI shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back for our full write up on this PBI earnings report later!

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