Pitney Bowes Inc. (NYSE:PBI) Plumbs New Lows on Earnings Miss and Low Key Guidance


Shares of digital transaction processor and postal machine maker Pitney Bowes Inc. (NYSE:PBI) were hammered down Tuesday after the company missed on earnings and revenue during its third quarter.

The stock fell 18.5% to $14.54 with 13.65 million shares changing hands, nearly 10X is average volume.

Technically, the future looks bleak for the stock because on Tuesday it violated both its previous lows of $15.74 in February, and $16.12 of July and touched a multi-year low of $14.40.

However, support lines exist at $13.60 and at $12.40. If these are broken, we could be headed for the 2013 low of $8.87.

Pitney Bowes Inc. (NYSE:PBI) misses in the third quarter

During the third quarter, the stock reported Q3 EPS of $0.44, which missed by $0.02, and revenue of $839.03 million, which missed by $12.79 million and was down by 3.5%.

Sales were down primarily due to foreign currency movements, the exit from certain emerging markets, and weakness in the three operating segments.

“We are not satisfied with our software performance, and have taken a number of actions around improving our sales channel efforts, and continuing to focus on growing the pipeline for license revenue deals… In our small and medium business, equipment sales rebounded after the initial deployment of our enterprise business platform in the second quarter…While there are lingering issues, we continue to enhance the platform and expect to see improvements in the end of the year, and into the first half of 2017,” the company said on its conference call.

Pitney Bowes Inc. (NYSE:PBI) tepid guidance for 2016

For the full year 2016 Pitney Bowes said revenue would grow -1% to -3% (on a constant currency basis). Adjusted EPS will be in the range $1.75 to $1.82 and free cash flow is expected in the range $400M to $450M.


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