Pitney-Bowes (NYSE: PBI) reported Q1 EPS of $0.05, $0.04 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $796 million versus the consensus estimate of $766.85 million.

Financial Overview:

• Revenue of $796 million, flat to prior year; growth of 1 percent when adjusted for the impact of currency and market exits
• GAAP EPS was a loss of $1.22; Adjusted EPS of $0.05
• EPS was negatively impacted by $0.05 as a result of the increase in credit loss provisions to reflect current macro-environment conditions in connection with the application of the current expected credit losses (CECL) accounting standard on January 1, 2020.
• GAAP EPS includes a non-cash $1.15 per share goodwill impairment charge related to the Global Ecommerce business.
• GAAP cash from operations was a use of $66 million; free cash flow was a use of $47 million.
• Based on the uncertainty around Covid-19, the Company is suspending its 2020 annual guidance.

“Clearly, we are all operating in unprecedented times and unchartered territory. Our first priority remains around the health, well-being and safety of our workforce, clients, partners and suppliers,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “Given these challenging times, I am proud of how our team worked together and supported our clients in the first quarter. These actions are consistent with the culture Pitney Bowes has built over the last 100 years and what will carry us into our next 100 years as a Company. Today, thousands of women and men across Pitney Bowes continue to play a critical role in the economy by keeping mail and parcels moving, by keeping our clients’ equipment running, and by keeping our supply chain flowing. I want to acknowledge and thank our employees for the incredible work they each are doing under these difficult circumstances. In the same way, we salute the many selfless Americans that are doing essential work to help our country through this difficult period.”

Lautenbach continued, “It is important to note that businesses engaged in mailing and shipping, which includes Pitney Bowes, have been designated an essential service by the Department of Homeland Security. The sending of mail and parcels is critical to our economy and we understand how vital it is for our clients.”

“Over the last several years, we have made strategic decisions to strengthen our portfolio, products and balance sheet for long-term growth. As a result, we are in a much better position to weather this situation and come out stronger as a Company.”

2020 Guidance

Based on the level of uncertainty around the depth and duration of Covid-19, in addition to the impact on clients, consumer demand and suppliers, and how it may ultimately impact each of our businesses, the Company is suspending guidance for the current financial year.

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