Pitney Bowes Q2 adjusted profit misses estimates, lowers FY revenue guidance

Overview

• Pitney Bowes Q2 revenue down 6% yr/yr, missing analyst expectations, per LSEG data

• Adjusted EPS for Q2 misses analyst estimates, per LSEG data

• Co increases share repurchase authorization to $400 mln, raises dividend

Outlook

• Pitney Bowes lowers full-year revenue guidance to $1.90 bln-$1.95 bln

• Company raises adjusted EPS guidance to $1.20-$1.40

• Pitney Bowes tightens adjusted EBIT guidance by lowering top end

• Company reaffirms full-year free cash flow guidance

Result Drivers

• SENDTECH SHIFT - Revenue decline attributed to end of product migration and shift from equipment placement to lease extensions

• COST REDUCTION - Adjusted EBIT and EBITDA improvements driven by simplification and cost reduction initiatives

• PRESORT GROWTH - Revenue growth in Presort Services due to higher revenue per piece and product mix

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the office equipment peer group is "buy."

• Wall Street's median 12-month price target for Pitney Bowes Inc is $17.00, about 31.9% above its July 29 closing price of $11.57

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw64TD6la