NYSE$PBI

Pitney Bowes Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Pitney Bowes' Q4 2019 earnings declined compared to the previous year, impacted by a ransomware attack and lower segment revenue.

Pitney Bowes reported a revenue of $831 million, a 3% decrease year-over-year. GAAP EPS was $1.03, while adjusted EPS was $0.14. The company's results were impacted by a ransomware attack, which adversely affected revenue by approximately $18 million and EPS by approximately $0.08 per share.

  • Revenue decreased by 3% to $831 million, or 2% when adjusted for currency and market exits.
  • GAAP EPS was $1.03, while adjusted EPS was $0.14.
  • Commerce Services revenue grew by 5% year-over-year.
  • SendTech Solutions revenue declined by 11% year-over-year.

Headline financials

Total Revenue

$831M

Previous: $947M-12.2%
EPS (adj)

$0.14

Previous: $0.38-63.2%
Capital Expenditures

$42M

Previous: $50.9M-17.4%
Free Cash Flow

$66.5M

Previous: $50.7M+31.0%
Net Income

$177M

Previous: $45M+292.8%
Operating Income

$8.04M

No prior period
Gross Profit

$312M

Previous: $421M-25.7%
Cash & Equivalents

$924M

Previous: $867M+6.6%
Total Assets

$5.47B

Previous: $5.94B-7.9%
Stock-Based Comp

$7.28M

Previous: $5.27M+38.2%

Revenue & EPS history

Pitney Bowes · Revenue · Quarterly

$831M

Q4 2019-12.2%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Pitney Bowes · $507M total across 2 segments · Q4 2019

  • SendTech Solutions
    $372M
  • Presort Services
    $135M

Forward guidance

The Company expects for full year 2020: Revenue, on a constant currency basis, is expected to be in the range of 1 percent decline to 1.5 percent growth when compared to 2019. Adjusted EPS from continuing operations to be in the range of $0.60 to $0.70 and reflects double-digit EBIT dollar growth over prior year, which will be offset by an expected higher tax rate as compared to prior year. Free cash flow to be in the range of $140 million to $170 million.

Tailwinds

  • Revenue, on a constant currency basis, is expected to be in the range of 1 percent decline to 1.5 percent growth when compared to 2019.
  • Adjusted EPS from continuing operations to be in the range of $0.60 to $0.70
  • Adjusted EPS reflects double-digit EBIT dollar growth over prior year.
  • Free cash flow to be in the range of $140 million to $170 million.
  • Free cash flow also reflects the planned use of cash for growth in third party leasing initiatives.

Headwinds

  • Revenue, on a constant currency basis, is expected to be in the range of 1 percent decline
  • Adjusted EPS reflects which will be offset by an expected higher tax rate as compared to prior year.
  • This guidance excludes any unusual items that may occur, such as additional portfolio or restructuring actions, not specifically identified, as the Company implements plans to further streamline its operations and reduce costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-1.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.4%

Avg return

30 days after

53%

38 / 72 earnings

Positive

+29.7%

Q3 2023

Best reaction

-30.8%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%+1.8%+12.1%
Q4 2025+8.5%+1.4%-0.5%
Q3 2025-10.6%-14.5%-12.0%
Q1 2025+5.1%+6.8%+17.7%
Q4 2024+11.7%+21.2%+7.8%
Q3 2024-3.7%-2.7%-0.6%
Q2 2024+11.3%+28.0%+14.0%
Q1 2024+25.2%+24.2%+28.7%
Q4 2023-1.2%-4.4%+1.5%
Q3 2023+29.7%+23.0%+35.6%
Q2 2023-9.2%-8.9%-13.4%
Q1 2023-8.5%-3.4%+6.1%
Q4 2022+2.8%+7.2%+5.3%
Q3 2022-1.6%+0.0%+23.2%
Q2 2022-21.0%-20.5%-26.3%
Q1 2022+22.3%+17.4%+8.1%
Q4 2021-20.0%-22.4%-19.0%
Q3 2021+2.2%+7.3%-7.7%
Q2 2021-5.7%+0.5%-6.5%
Q1 2021-15.2%-15.7%-4.1%
Q4 2020-19.2%-13.6%-22.2%
Q3 2020-30.8%-28.1%-19.2%
Q2 2020+13.2%+63.4%+98.0%
Q1 2020-27.9%-26.2%-24.1%
Q4 2019+5.7%+2.8%-18.1%
Q3 2019+3.4%+3.2%-1.6%
Q2 2019+12.4%+7.9%+11.8%
Q1 2019-25.6%-18.7%-48.7%
Q4 2018+1.2%+2.1%-2.4%
Q3 2018+22.2%+22.1%+27.5%
Q2 2018-5.8%-7.2%-16.8%
Q1 2018-14.8%-12.2%-10.1%
Q4 2017+8.4%+0.2%+1.6%
Q3 2017-18.6%-20.1%-25.2%
Q2 2017-15.8%-18.4%-18.4%
Q1 2017+15.4%+15.4%+14.5%
Q4 2016-18.7%-17.3%-14.8%
Q3 2016-18.3%-20.2%-18.6%
Q2 2016-5.6%-2.3%-0.7%
Q1 2016-10.7%
Q4 2015-11.9%
Q3 2015-2.1%
Q2 2015+0.7%
Q1 2015+1.2%
Q4 2014-4.0%
Q3 2014-1.5%
Q2 2014+2.7%
Q1 2014+5.9%
Q4 2013+15.9%
Q3 2013+8.3%
Q2 2013+12.2%
Q1 2013-11.9%
Q4 2012+15.4%
Q3 2012-11.4%
Q2 2012+4.6%
Q1 2012-6.3%
Q4 2011+1.2%
Q3 2011+2.5%
Q2 2011-6.1%
Q1 2011+0.4%
Q4 2010-0.6%
Q3 2010+2.2%
Q2 2010-1.4%
Q1 2009-4.1%
Q1 2010-4.1%
Q4 2009+1.1%
Q3 2009+0.4%
Q3 2008+0.4%
Q2 2008+3.8%
Q4 2007+3.8%
Q4 2008+3.8%
Q2 2009+3.8%

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