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Investing.com -- Pitney Bowes Inc . (NYSE:PBI) shares surged 4.6% after the shipping and mailing technology company reported second quarter adjusted earnings that nearly doubled from a year ago, despite missing analyst estimates and lowering its revenue outlook.
The company posted adjusted earnings per share of $0.27 for the second quarter, slightly below the analyst consensus of $0.28, but up significantly from $0.11 in the same period last year. Revenue came in at $462 million, missing the consensus estimate of $476.21 million and declining 6% YoY. Despite the revenue miss, adjusted EBIT jumped 37% to $102 million compared to the prior year.
"Our focus on simplification and cost reduction initiatives is clearly paying dividends across our business segments," said Kurt Wolf, CEO of Pitney Bowes. "While revenue declined as expected following the conclusion of our product migration cycle, our profitability metrics show substantial improvement."
The company updated its full-year revenue guidance to a range of $1.90 billion to $1.95 billion, down from its previous forecast of $1.95 billion to $2 billion, citing a strategic shift in its Presort Services segment. However, Pitney Bowes raised its adjusted EPS guidance to $1.20-$1.40 from the previous $1.10-$1.30 range, reflecting improved profitability.
The SendTech Solutions segment, which provides shipping and mailing technology, saw revenue decline 8% to $312 million, though adjusted segment EBIT increased 5% to $101 million. Presort Services revenue grew 2% to $150 million, with adjusted segment EBIT surging 33% to $36 million.
Free cash flow for the quarter was $106 million, excluding $8 million in restructuring payments. The company maintained its full-year free cash flow guidance of $330-$370 million.
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