Pitney-Bowes (PBI) Misses Q1 EPS by 9c, Revenues Beat; Affirms FY19 EPS Guidance Below Consensus

Pitney-Bowes (NYSE: PBI) reported Q1 EPS of $0.12, $0.09 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $868 million versus the consensus estimate of $866.04 million.

• Revenue of $868 million, a decline of 3 percent; a decline of 2 percent when adjusted for the impact of currency; a decline of 1 percent when adjusted for both the impact of currency and market exits
• GAAP EPS of ($0.01), which included a $0.10 loss related to the previously announced sale of direct operations in 6 smaller European markets
• Adjusted EPS of $0.12
• GAAP cash from operations of $70 million; free cash flow of $32 million
• Repurchased $39 million of stock, or 5.6 million shares
• The Company is updating its 2019 annual guidance

“While we delivered first quarter revenue that was largely in-line with our expectations, we fell short on profitability. Clearly, we are not pleased with our profit performance, but are confident that the actions we are taking will improve profitability and continue to position us for sustained growth for the long-term,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “We continued to make progress against our long-term objectives as we move our portfolio of business to the growth areas of the market. For the second consecutive quarter, our Commerce Services business was the largest component of our overall revenue and our shipping-related revenues counted for approximately one-third of our total revenue.”

GUIDANCE:

Pitney-Bowes sees FY2019 EPS of $0.90-$1.05, versus the consensus of $1.11.

• Revenue, on a constant currency (CC) basis, to be in the range of 1 percent to 3 percent growth when compared to 2018.
• Free cash flow to be in the range of $200 million to $250 million. Free cash flow guidance includes the funding of third party financing initiatives.

For earnings history and earnings-related data on Pitney-Bowes (PBI) click here.

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