Pitney-Bowes (PBI) Misses Q3 EPS by 9c, Beats on Revenues; Lowers FY17 EPS Guidance Below Consensus

Pitney-Bowes (NYSE: PBI) reported Q3 EPS of $0.33, $0.09 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $843 million versus the consensus estimate of $831.45 million.

2017 Guidance

The Company is increasing its annual guidance range for revenue and lowering its annual guidance range for adjusted EPS and free cash flow.

The Company’s guidance for the full year 2017 is now expected to be:

• Revenue, on a constant currency basis, to be in the range of 3 percent to 5 percent growth, when compared to 2016. This has been updated from the previous range of flat to 1 percent as a result of the revenue expected from Newgistics in the fourth quarter.
• Adjusted EPS to be in the range of $1.38 to $1.46. This has been updated from the previous range of $1.70 to $1.78.
• Free cash flow to be in the range of $350 million to $380 million. This has been updated from the previous range of $400 million to $430 million.

The Company is lowering its annual tax range on adjusted earnings. The Company now expects to be in the range of 28 percent to 30 percent as compared to the previous range of 31 percent to 33 percent.

Quarterly Financial Results:

• Revenue of $843 million, flat versus prior year.
• GAAP EPS of $0.31; Adjusted EPS of $0.33.
• GAAP cash from operations of $146 million; free cash flow of $109 million.
• The Company is increasing its annual revenue guidance range to reflect the Newgistics acquisition.
• The Company is lowering its annual guidance range for adjusted EPS and free cash flow.
• The Company is announcing a $200 million spend reduction program over the next 2 years.
• The Board of Directors has initiated a review of strategic alternatives for the Company to enhance shareholder value.

GUIDANCE:

Pitney-Bowes sees FY2017 EPS of $1.38-$1.46, versus the consensus of $1.68.

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

You May Also Be Interested In

• RH (RH) Tops Q1 EPS by 12c
• Lands' End (LE) Tops Q1 EPS by 8c ; Offers Guidance
• BIG3 Basketball to go public via Graf Global merger at $290 million