Boston, MA 10/30/2013 (wallstreetpr) – Pitney Bowes Inc. (NYSE:PBI) saw a remarkable rally in prices, following the announcement for the fourth quarter, 2013.
The company has reported earnings of 48 cents on each share, translating to rates that are 22.5% higher than market expectations of 40 cents. Earnings for the past quarter were up by 11.4% corresponding to 44 cents per share in same quarter last year. The company had suffered from restructuring woes and had failed to post rich earnings the previous year.
However, the company posted net loss of $5.5 million for the quarter. Total revenue of $9938.8 million for the third quarter this year, saw a fall of 1% over previous quarter.
Pitney Bowes segmental performance remained mixed. Digital Commerce Solutions segment posted least sales. According to the CEO March Lautenbach, the company expects to use the savings the company shall make by way of cost-cutting will be used in bringing in growth in its underperforming digital commerce solutions segment.
Additionally, the International Mailing segment brought in higher revenues due to the release of new model for the North American market segment. Besides, the company has divested its Norway-based furniture business due to non-performance.
The total expenses for the company have been $355.2 million for this quarter as against the previous year’s third quarter expense of $370.9 million. While the Research and Development expense was $24.8 million the previous year’s quarter, this year the total was $370.9 million. The income the company earned by way of operations was $81.3 million this year against $92.5 million last year. The lower income was due to the increase in interest while the cost of business services remained higher. Additionally, the company will also use advance received against sales from its North American markets to repay debts. The guidance is issued for $1.62-$1.77 per share to $1.68 to $1.83, which will also address tax benefits of 6 cents for a share for the quarter.
