Earnings Preview: Pitney Bowes

| About: Pitney Bowes (PBI)

Pitney Bowes Inc. (NYSE:PBI) is scheduled to report its Q2 2012 results on August 2, 2012, after the bell. The Street expects EPS and revenue of $0.50 and $1.25B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from PBI and the news from its closest competitors.

Pitney Bowes Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $0.52 EPS, beating analyst estimates of $0.50.

Pitney Bowes Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.50 based on 4 analysts' estimates, down from $0.52 a year ago. Revenue estimates are $1.25B, down from $1.31B a year ago. The median target price by analysts for the stock is $17.50.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On July 12, 2012, Pitney Bowes Inc announced that more than fifty of the mailers in the United States have signed agreements to offer digital delivery of bills, statements, financial documents and other content to their customers through the Volly secure digital delivery service.
  • On July 9, 2012, Pitney Bowes Inc announced that it has declared a quarterly cash dividend on the Company's common stock of $0.375 per share, payable September 12, 2012, to stockholders of record on August 10, 2012; a quarterly cash dividend of $0.53 per share on the Company's $2.12 convertible preference stock, payable October 1, 2012, to stockholders of record September 14, 2012, and a quarterly cash dividend of $0.50 per share on the Company's 4% convertible cumulative preferred stock, payable November 1, 2012, to stockholders of record October 15, 2012.
  • On June 20, 2012, SafeNet, Inc and Pitney Bowes Inc announced that the companies have joined forces to enhance the security of digital mail delivery in the cloud for consumers using Volly, a Pitney Bowes digital delivery service for online mail and bill payment.
  • On May 23, 2012, Pitney Bowes Inc. announced that it is opening another R&D center in Pune, India which will be the second center for the Company in the country, and will focus on research and development for its global portfolio, including Volly, a digital mailbox solution.
  • On May 7, 2012, Pitney Bowes announced that for fiscal 2012, it continues to expects revenue, excluding the impacts of currency, to be in a range of 2% growth to a decline of 2% as compared to 2011 and expects diluted earnings per share from continuing operations is in the range of $2.05 to $2.25. The Company reported revenues of $5.3 billion in fiscal 2011.
  • On April 9, 2012, Pitney Bowes announced that the Board has declared a quarterly cash dividend on the Company's common stock of $0.375 per share, payable June 12, 2012, to stockholders of record on May 11, 2012; a quarterly cash dividend of $0.53 per share on the Company's $2.12 convertible preference stock, payable July 1, 2012, to stockholders of record June 15, 2012, and a quarterly cash dividend of $0.50 per share on the Company's 4% convertible cumulative preferred stock, payable August 1, 2012, to stockholders of record July 13, 2012.
  • On April 4, 2012, Pitney Bowes announced that Australia Post has selected the Volly secure digital delivery system from Pitney Bowes Inc. to power the Australia Post Digital Mailbox service that is planned to roll out to households across Australia later this year.
  • On February 9, 2012, Pitney Bowes announced that for fiscal 2012, it expects revenue, excluding the impacts of currency, to be in a range of 2% growth to a decline of 2% as compared to 2011 and expects diluted earnings per share from continuing operations is in the range of $2.05 to $2.25. The Company reported revenues of $5.3 billion in fiscal 2011.
  • On February 1, 2012, Pitney Bowes announced that it has declared a quarterly cash dividend on the Company's common stock of 37.5 cents per share, payable March 12, 2012, to stockholders of record on February 17, 2012; a quarterly cash dividend of 53 cents per share on the Company's $2.12 convertible preference stock, payable April 1, 2012, to stockholders of record March 15, 2012, and a quarterly cash dividend of 50 cents per share on the Company's 4% convertible cumulative preferred stock, payable May 1, 2012, to stockholders of record April 13, 2012.

Competitors

Cintas Corporation (NASDAQ:CTAS), JDS Uniphase Corporation (JDSU), R.R. Donnelley & Sons Company (NASDAQ:RRD), Siemens (SI), and Xerox (NYSE:XRX) are considered major competitors for Pitney Bowes and the table below provides the key metrics for these companies and the industry.

Pitney Bowes Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.

PBI Chart

PBI data by YCharts

Competitors' Latest Development

  • On July 26, 2012, Reuters reported that Siemens will spin off its lighting unit Osram in 2013.
  • On July 24, 2012, Siemens AG's Siemens Healthcare announced that the MAGNETOM Spectra 3 Tesla MRI system has received clearance from the U.S. Food and Drug Administration (FDA).
  • On July 23, 2012, Xerox Corporation announced that Global Imaging Systems (GIS), A Xerox Company, acquired Illinois-based Martin Whalen Office Solutions, provider of office technology and software solutions for Chicago's southern and western suburbs.
  • On July 20, 2012, Reuters reported that Siemens AG is set to offer around EUR1.3 billion ($1.6 billion) for Ansaldo Energia to extend its reach in the gas turbines market.
  • On July 20, 2012, Xerox Corporation announced that considering the economic uncertainty, the Company now expects third quarter of 2012 GAAP earnings of $0.20 to $0.22 per share and adjusted EPS to be $0.24 cents to $0.26 per share.
  • On July 19, 2012, DONG Energy A/S announced that it has signed a framework agreement with Siemens AG's Siemens Energy on the supply and servicing of a total of 300 offshore wind turbines of six megawatt each, giving a total capacity of 1,800 megawatt.
  • On July 19, 2012, R.R. Donnelley & Sons Company announced a regular quarterly dividend of $0.26 per common share. The dividend is payable September 4, 2012 to stockholders of record as of the close of business on August 10, 2012.
  • On July 17, 2012, Wi-LAN Inc. announced that it has acquired a global portfolio of more than 40 patents and applications from Siemens AG related to telecommunication network management and mobile multimedia.
  • On July 16, 2012, Cintas Corporation announced that for fiscal 2013, it expects revenue to be in the range of $4.25 billion to $4.35 billion, with full year earnings per diluted share (EPS) in the range of $2.47 to $2.55.
  • On July 11, 2012, Xerox Corporation announced that it has signed a definitive agreement to acquire WDS, a firm that provides technical support, knowledge management and related consulting to wireless telecommunication brands.
  • On July 5, 2012, Areva SA announced that the International Court of Arbitration of the International Chamber of Commerce (Pending:ICC), called on in order to resolve the dispute between the Areva-Siemens consortium and its customer, the Finnish operator TVO, as part of the construction of the EPR reactor of the Olkiluoto 3 (OL3) nuclear power plant in Finland, has just handed down a partial judgment requiring TVO to release EUR 100 million owed to the Areva-Siemens Consortium, and withheld in contravention of contractual provisions.
  • On July 5, 2012, Dow Jones reported that Siemens AG could be preparing to make an offer for Ansaldo Energia, a unit of Finmeccanica SpA, in the coming days, according to Italian business daily Il Sole 24 Ore. Siemens, which has previously made an expression of interest for the energy services unit, would be working with Credit Suisse Group AG to formulate an offer worth nearly EUR1.3 billion ($1.63 billion).
  • On July 3, 2012, Dow Jones reported that State-run Indian telecom operator Bharat Sanchar Nigam Ltd. (BSNL) has given network-equipment contracts to China's ZTE Corp and Alcatel Lucent SA. While ZTE was the lowest bidder, Alcatel-Lucent was among four vendors shortlisted by BSNL.
  • On July 2, 2012, Xerox Corporation announced the acquisition of Lateral Data, a e-discovery technology provider, for $30 million. Lateral Data`s flagship software, Viewpoint, brings simplicity and affordability to e-discovery by enabling corporate legal departments and law firms to manage the entire e-discovery lifecycle using a single, in-house solution.
  • On June 29, 2012, The Economic Times reported that Nokia Siemens Networks has bagged nearly INR200 crore (INR2 billion) of contracts to supply network gear to the Railways.
  • On June 26, 2012, Xerox Corporation announced that Florida Health Choices, a corporation established by the state to improve access to health care, has selected Xerox to administer Insurance Marketplace, a program designed to give small business and eligible individuals more flexibility in finding affordable health insurance and other services.
  • On June 19, 2012, Dow Jones reported that four telecommunication gear makers short-listed by Bharat Sanchar Nigam Ltd. (BSNL) for an equipment supply contract worth more than $1 billion have pulled out saying the final bid price is very low and isn't viable for them.
  • On June 18, 2012, Xerox Corporation announced that it has been selected as a prime contractor to the National Institutes of Health (NIH), supporting the information technology and business process needs of the federal healthcare marketplace.
  • On June 16, 2012, Reuters reported that EU regulators will decide next week whether to accept concessions offered by Germany's Siemens AG and France's Areva SA to end an investigation into their former nuclear power joint venture.
  • On June 7, 2012, Nokia Oyj announced that Nokia Oyj and Siemens AG's joint venture Nokia Siemens has been chosen by the Saudi Arabian operator Zain KSA to supply infrastructure and services to the company's 4G network in Saudi Arabian city, Jeddah.
  • On June 7, 2012, Xerox Corporation announced that the state of Illinois has turned to Xerox to support a program that helps people in need make ends meet. Under a five-year contract valued at $42 million with the option for a five-year renewal, Xerox will provide the state with electronic benefit transfer services to distribute benefits for the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps), as well as cash assistance on a reloadable card.
  • On June 5, 2012, Thin Film Electronics ASA announced that it has extended its relationship with PARC, a Xerox Corp's Company, for the delivery of integrated printed electronic systems.
  • On June 1, 2012, Dow Jones reported that DragonWave Inc has completed the acquisition of Nokia Oyj and Siemens AG's joint venture Nokia Siemens Networks' microwave transport business including its associated operational support system and related support functions.
  • On May 22, 2012, R.R. Donnelley & Sons Company and EDGAR Online, Inc. announced that they have signed a definitive agreement pursuant to which RR Donnelley will acquire EDGAR Online, provider of disclosure management services, financial data and enterprise risk analytics software and solutions for both corporate and investment professionals.
  • On May 2, 2012, JDS Uniphase Corporation announced that for fourth quarter of 2012, it expects non-GAAP net revenue to be in the range of $415-$435 million. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $457 million for fourth quarter of 2012.
  • On May 2, 2012, R.R. Donnelley & Sons Company announced that it continues to expect non-GAAP net earnings per diluted share to be in the range of $1.84 to $1.92. GAAP net earnings per diluted share in 2012 may include restructuring and impairment charges, acquisition-related expenses, the resolution of certain tax items and other items that are not currently determinable, but may be significant.

Technical Overview


The stock has a market capitalization of $2.61B and is currently trading at $13.24 with a 52-week range of $12.81-$21.76. The stock's year-to-date performance has been -26.55%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.