Why Pitney Bowes Stock Crashed 15% Today
Shares of small-cap postal delivery solutions provider Pitney Bowes (NYSE: PBI) got rocked in Thursday afternoon trading -- down 15.1% as of 1:35 p.m. ET -- after reporting misses on both the top and bottom lines this morning.
Heading into the quarter, analysts had forecast Pitney Bowes would earn $0.04 per share on $898 million in sales. As it turned out, profits were just half that -- $0.02 per share -- and sales "missed" by 3%.
Wall Street was hoping Pitney Bowes could at least eke out a "flat" quarter relative to last year, but Pitney Bowes' sales slid 3% instead, to $871 million. Earnings -- both according to generally accepted accounting principles (GAAP) and pro forma -- simply collapsed, down 82% year over year to the aforementioned $0.02. Free cash flow evaporated, with $6 million in real cash profit coming in 93% below second-quarter 2021 levels.
Source Fool.com
