We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pitney Bowes (PBI) Down 0.9% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Pitney Bowes (PBI - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pitney Bowes due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Pitney Bowes Q2 Earnings Beat Estimates, Revenue Up Y/Y
Pitney Bowes reported second-quarter 2021 adjusted earnings of 12 cents per share, which beat the Zacks Consensus Estimate by 140%. The company reported break-even in the year-ago quarter.
Revenues increased 7.4% year over year to $899.2 million. Adjusting for foreign currency exchange, revenues increased 6% year over year.
Global Ecommerce revenues increased 5% (up 3% after adjusting for currency) to $418 million. Presort Services of $135 million were up 14% (up 14% after adjusting for currency) on a year-over-year basis. Sending Technology Solutions were up 8% year over year (up 6% after adjusting for currency) to $346 million.
In the second quarter, adjusted EBITDA increased 7.1% year over year to $95.9 million. Segment EBITDA increased 10% year over year to $286.2 million.
Segment EBIT jumped 15% from the year-ago quarter’s figure to $219.6 million.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and cash equivalents and short-term investments were $814.3 million compared with $697 million as of Mar 31, 2021.
As of Jun 30, 2021, total debt (including current portion) was $2.43 billion compared with $2.44 billion as of Mar 31, 2021.
Cash flow generated was $78.8 million compared with $65.9 million of net cash generated in operations in the previous quarter. Free cash flow was $86.7 million compared with free cash outflow of $1.24 million in the prior quarter.
Guidance
For 2021, Pitney expects revenues to grow in the low-to-mid single digit range. The company also expects adjusted earnings per share to grow on a year-over-year basis owing to strong performance of Global Ecommerce.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Pitney Bowes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pitney Bowes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pitney Bowes (PBI) Down 0.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Pitney Bowes (PBI - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pitney Bowes due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Pitney Bowes Q2 Earnings Beat Estimates, Revenue Up Y/Y
Pitney Bowes reported second-quarter 2021 adjusted earnings of 12 cents per share, which beat the Zacks Consensus Estimate by 140%. The company reported break-even in the year-ago quarter.
Revenues increased 7.4% year over year to $899.2 million. Adjusting for foreign currency exchange, revenues increased 6% year over year.
Global Ecommerce revenues increased 5% (up 3% after adjusting for currency) to $418 million. Presort Services of $135 million were up 14% (up 14% after adjusting for currency) on a year-over-year basis. Sending Technology Solutions were up 8% year over year (up 6% after adjusting for currency) to $346 million.
In the second quarter, adjusted EBITDA increased 7.1% year over year to $95.9 million. Segment EBITDA increased 10% year over year to $286.2 million.
Segment EBIT jumped 15% from the year-ago quarter’s figure to $219.6 million.
Balance Sheet & Cash Flow
As of Jun 30, 2021, cash and cash equivalents and short-term investments were $814.3 million compared with $697 million as of Mar 31, 2021.
As of Jun 30, 2021, total debt (including current portion) was $2.43 billion compared with $2.44 billion as of Mar 31, 2021.
Cash flow generated was $78.8 million compared with $65.9 million of net cash generated in operations in the previous quarter. Free cash flow was $86.7 million compared with free cash outflow of $1.24 million in the prior quarter.
Guidance
For 2021, Pitney expects revenues to grow in the low-to-mid single digit range. The company also expects adjusted earnings per share to grow on a year-over-year basis owing to strong performance of Global Ecommerce.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Pitney Bowes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pitney Bowes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.