NYSE$PBI

Pitney Bowes Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Pitney Bowes reported strong Q4 2020 results, marked by revenue growth and strategic progress.

Pitney Bowes announced a remarkable fourth quarter, with a 24% increase in revenue to $1.0 billion. GAAP EPS was $0.11, and adjusted EPS was $0.13. The company reduced debt by $31 million and saw significant growth in Global Ecommerce revenue, which exceeded $500 million for the first time.

  • Revenue grew by 24% reaching $1.0 billion.
  • Global Ecommerce revenue increased by 60% year-over-year, surpassing $500 million.
  • SendTech Solutions experienced revenue, EBIT, and EBITDA growth.
  • The company reduced debt by $31 million during the quarter.

Headline financials

Total Revenue

$1.03B

Previous: $831M+23.7%
EPS (adj)

$0.13

Previous: $0.14-7.1%
Capital Expenditures

$24.2M

Previous: $42M-42.4%
Free Cash Flow

$96.8M

Previous: $66.5M+45.7%
Net Income

$18.9M

Previous: $177M-89.3%
Operating Income

$15.6M

Previous: $8.04M+94.1%
Gross Profit

$299M

Previous: $312M-4.4%
Cash & Equivalents

$921M

Previous: $924M-0.3%
Total Assets

$5.22B

Previous: $5.47B-4.6%
Stock-Based Comp

$2.24M

Previous: $7.28M-69.2%

Revenue & EPS history

Pitney Bowes · Revenue · Quarterly

$1.03B

Q4 2020+23.7%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Pitney Bowes · $510M total across 2 segments · Q4 2020

  • SendTech Solutions
    $376M+0.9%
  • Presort Services
    $135M-0.3%

Forward guidance

The Company expects annual revenue to grow over prior year in the low-to-mid single digit range, making 2021 the fifth consecutive year of constant currency growth. The Company expects adjusted EPS to grow over prior year. The Company also expects lower free cash flow primarily due to the changes in certain working capital items that benefitted 2020 and are not expected to continue at the same level in 2021.

Tailwinds

  • Annual revenue is expected to grow in the low-to-mid single digit range.
  • 2021 will be the fifth consecutive year of constant currency growth.
  • Adjusted EPS is expected to grow over the prior year.
  • SendTech solutions are expected to continue to drive growth.
  • Global Ecommerce is expected to maintain its growth trajectory.

Headwinds

  • Free cash flow is expected to be lower due to changes in working capital items.
  • Increased costs related to postal, transportation, and labor might impact profitability.
  • Potential impacts from Covid-19 regarding operations, employees, and supply chain.
  • Declining physical mail volumes could affect revenue.
  • Changes in postal regulations might pose challenges.

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 2020

Historical avgQ4 2020

-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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