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Category: Stock Market and Pitney Bowes (PBI)
Date: 2 November 2020 Stock Price of Pitney Bowes: $5.31 We take a look at the 3rd quarter earnings report of their 2020 fiscal year of Pitney Bowes, a global commerce company that power billions of transactions, with 90% of Fortune 500 companies using their services. The group reported revenues of $891.9 million and net income of $11.4 million.
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About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing. For nearly 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right.
Pitney Bowes office
Overview of Pitney Bowes 3rd quarter 2020 earnings report
Third Quarter - Financial Overview:
Third Quarter - Other Highlights:
- Revenue of $892 million, growth of 13 percent
- GAAP EPS of $0.07; Adjusted EPS of $0.08
- GAAP cash from operations of $104 million; free cash flow of $85 million
Third Quarter - Other Highlights:
- The Company repaid the $100 million drawn against the revolving credit facility.
- The Company ended the third quarter with $820 million in cash and short-term investments.
- Shipping-related revenues represented 50 percent of total revenue.
- Global Ecommerce revenue exceeded $400 million for the first time, representing 47 percent growth.
- Global Ecommerce Domestic Parcel volumes more than doubled from prior year.
- Presort Services productivity measures resulted in 115,000 fewer labor hours to sort nearly 4.1 billion pieces.
- SendTech shipping revenue was $32 million and grew at a double-digit rate.
- SendTech shipped nearly 12,000 units of the SendPro Mailstation since launching in April.
Pitney Bowes management commentary on their 3rd quarter 2020 earnings report
STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 30, 2020-- Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today announced its financial results for the third quarter 2020.
“We grew revenue 13 percent in the third quarter, which is the strongest organic revenue growth rate we have achieved in well over a decade,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “I am extremely proud of what the team has accomplished, especially during these challenging times.
“Several years ago, we implemented a strategy to shift our portfolio to the growth areas of the market,” Lautenbach continued. “The investments we have made are paying off especially with our shipping-related revenues, which comprise half of our overall revenue. Although uncertainties remain given the Covid-19 pandemic, we are pleased with the momentum in our businesses and believe we are well positioned to capitalize on the market opportunities ahead of us.”
“We grew revenue 13 percent in the third quarter, which is the strongest organic revenue growth rate we have achieved in well over a decade,” said Marc B. Lautenbach, President and CEO, Pitney Bowes. “I am extremely proud of what the team has accomplished, especially during these challenging times.
“Several years ago, we implemented a strategy to shift our portfolio to the growth areas of the market,” Lautenbach continued. “The investments we have made are paying off especially with our shipping-related revenues, which comprise half of our overall revenue. Although uncertainties remain given the Covid-19 pandemic, we are pleased with the momentum in our businesses and believe we are well positioned to capitalize on the market opportunities ahead of us.”
Revenue improved from second quarter as year-over-year declines moderated. Revenue declined from prior year largely driven by lower equipment sales, support services, supplies and financing. Business services revenues grew over prior year as clients increased their usage of shipping offerings and capabilities. EBIT and EBITDA margins declined from prior year primarily driven by the lower revenue performance.
2020 Guidance
Given the continued level of uncertainty around the depth and duration of Covid-19, the Company will not provide guidance which is consistent with prior quarters.
2020 Guidance
Given the continued level of uncertainty around the depth and duration of Covid-19, the Company will not provide guidance which is consistent with prior quarters.
Pitney Bowes (NYSE: PBI) stock price history over the last 5 years
The image below, obtained from Google, shows the stock price history of Pitney Bowes over the last 5 years. And it's not been a good time for Pitney Bowes stockholders. In fact its been a horrible time for them. 5 years ago the stock was trading at around $21.20 a stock and its currently trading at $5.31 a stock. That's a massive loss of -75.1% suffered by Pitney Bowes stockholders over the last 5 years.
The stock of Pitney Bowes is trading at closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Pitney Bowes stock is positive at this point in time
The stock of Pitney Bowes is trading at closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Pitney Bowes stock is positive at this point in time
Pitney Bowes (NYSE: PBI) stock price history over the last 5 years
Recent coverage of Pitney Bowes
The extract below discusses the latest news regarding Pitney Bowes as obtained from Fool.com
What happened
Shares of Pitney Bowes (NYSE:PBI) fell just over 20% in the first 90 minutes of trading on Oct. 30. That decline comes on the heels of the company's third-quarter earnings report, which, at first glance, didn't seem all that bad. However, there's more to the story here than just one quarter of earnings.
So what
Pitney Bowes' top line was up 13% year over year, which the company noted was the fastest revenue growth it has achieved in more than a decade. Third-quarter earnings of $0.07 per share under generally accepted accounting principles (GAAP) compared favorably to a loss of $0.02 in the same period of 2019. Meanwhile, the company managed to beat analyst estimates of $0.05 per share in earnings. So far you'd expect Pitney Bowes stock to be up today.
Read the full article here
What happened
Shares of Pitney Bowes (NYSE:PBI) fell just over 20% in the first 90 minutes of trading on Oct. 30. That decline comes on the heels of the company's third-quarter earnings report, which, at first glance, didn't seem all that bad. However, there's more to the story here than just one quarter of earnings.
So what
Pitney Bowes' top line was up 13% year over year, which the company noted was the fastest revenue growth it has achieved in more than a decade. Third-quarter earnings of $0.07 per share under generally accepted accounting principles (GAAP) compared favorably to a loss of $0.02 in the same period of 2019. Meanwhile, the company managed to beat analyst estimates of $0.05 per share in earnings. So far you'd expect Pitney Bowes stock to be up today.
Read the full article here
Inside a Pitney Bowes mail sorting warehouse
Pitney Bowes (NYSE: PBI) latest stock valuation
So what is Pitney Bowes stock worth based on the release of their latest earnings report? Based on Pitney Bowes latest earnings report our valuation models provide a target price (full value price) for Pitney Bowes stock at $4 a stock. We therefore believe that the stock of Pitney Bowes is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $4. So a good entry point into Pitney Bowes would be at $3.60 or below. Since the stock of Pitney Bowes is trading at well above our suggested entry point we rate the stock of Pitney Bowes as SELL
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $4. So a good entry point into Pitney Bowes would be at $3.60 or below. Since the stock of Pitney Bowes is trading at well above our suggested entry point we rate the stock of Pitney Bowes as SELL
Next earnings release date for Pitney Bowes
It is expected that Pitney Bowes (NYSE: PBI) 1st quarter 2020 earnings report will be released early May 2020