Pitney-Bowes (NYSE: PBI) reported Q1 EPS of $0.34, $0.07 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $845 million versus the consensus estimate of $870.62 million.

“We continued to make progress during the first quarter as performance improved in several of our businesses and we largely completed the next major milestones in our transformation to deliver greater long-term value,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “During the quarter, we turned in a strong performance in new equipment sales in North America Mailing, a leading indicator for our Mailing business. Our Presort Services business also performed well, and Global Ecommerce continued to have strong revenue growth. However, we did not execute in our Software Solutions business, which also experienced weaker technology market conditions. We have realigned our Software management team and expect improvement throughout the year.

“In the last 120 days, we launched the first major television advertising campaign in twenty years, deployed our new ERP and business process platform in Canada and the U.S., and moved to a dealer network in several markets. Last week, we announced the Pitney Bowes Commerce Cloud, including five SaaS-based solutions that utilize our physical and digital capabilities, mobile, global and ecommerce technologies with all of the end-to-end requirements that drive commerce. While these investments have impacted our first quarter results, we will begin to realize benefits associated with the implementation of our new platform beginning in the second half of the year. Going forward, I am confident in our ability to deliver on our long-term strategic plans and we will continue to unlock value for our shareholders.”

GUIDANCE:

Pitney-Bowes sees FY2016 EPS of $1.80-$2.00, versus the consensus of $1.86.

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