Pitney Bowes (PBI) Q1 Earnings Beat, Up Y/Y, View Intact
Zacks Investment Research | May 01, 2017 10:51PM ET
Pitney Bowes Inc. (NYSE:PBI) beat earnings estimates in first-quarter 2017, marking an end to five quarters of back-to-back misses. The company reported adjusted earnings of 36 cents per share, beating the Zacks Consensus Estimate of 34 cents. Also, on a year-over-year basis, adjusted earnings improved 5.9%.
On a GAAP basis, the company reported earnings per share of 35 cents, up 16.7% compared to the year-ago tally. A fall in total costs, along with lower restructuring and asset impairment charges proved conducive to bottom-line growth.
Inside the Headlines
Total revenue in the quarter was $836.6 million, down 0.9% year over year on a reported basis. However, revenues inched up 0.2%, when adjusted for currency impact.
Foreign currency headwinds, absence of revenues from the previously exited operations, as well as dismal performance of the Small and Medium Business offset stellar growth of the Digital Commerce business.
As for the segments, on a reported basis, Small and Medium Business (“SMB”) Solutions revenues dipped 6% year over year to $449 million. The tepid performance was due to softness in the North American Mailing business (down 4%) and International Mailing Business (down 11%). Lower recurring revenue streams and supplies revenues led to the lackluster performance of the North American Mailing business. Additionally, decline in recurring revenues and poor equipment sales proved to be a drag on the International Mailing Business.
Enterprise Business Solutions (“EBS”) revenues climbed 3% year over year to $222 million. Decent performance of the production mail business (up 2%) and Presort Services (up 4%) drove the top-line growth of this segment. Higher inserter and sorter equipment sales bolstered sales of the production mail business. Higher “Standard Class” and “First Class” mail volumes also proved conducive to the growth of this segment.
Digital Commerce Solutions reported 9% year-over-year growth in sales to $166 million, on the back of strong Global e-commerce business (up 17%). Robust volumes in the UK outbound marketplace and growth in overall retail volumes acted as tailwinds for the Global e-commerce business. After several quarters of decline, Software solutions sales remained flat year over year in the reported quarter.
Pitney Bowes Inc. Price, Consensus and EPS Surprise
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