Pitney Bowes Shares Drop As Q2 Earnings Falls Short

Pitney Bowes Inc (NYSE:PBI) reported a second-quarter FY22 sales decline of 3.1% year-on-year to $871.5 million, missing the analyst consensus of $897.97 million.
Global Ecommerce revenue fell 6% Y/Y to $394 million, Presort services increased 3% to $139 million, and SendTech Solutions declined 2% to $339 million.
Total costs and expenses for the quarter were $874.2 million. Adjusted EBITDA fell 14.2% Y/Y to $82.3 million.
Adjusted EPS of $0.02 missed the consensus of $0.04.
“In Global Ecommerce, we were not able to overcome macroeconomic headwinds, including the strength of the US dollar and the COVID shut down in China, which caused a reduction in some of our package volumes,” said CEO Marc B. Lautenbach.
The company held $582.2 million in cash and equivalents as of June 30, 2022. Cash provided by operating activities totaled $35 million with a free cash flow of $6 million.
Outlook: Pitney Bowes expects full-year revenue (constant currency) to range from a low-single-digit percentage decline to a low-single-digit percentage increase.
In addition, the company expects to generate solid free cash flow in 2022, though at a lower level than the prior year.
Price Action: PBI shares are trading lower by 14.1% at $3.55 on the last check Thursday.