Why Pitney Bowes Stock Was Blowing Up This Morning

Why Pitney Bowes Stock Was Blowing Up This Morning

Shares of Pitney Bowes (NYSE: PBI) were bowing to the pressure of a disappointing earnings release this morning. (Yes, again.) After the postal services company reported adjusted earnings of $0.33 per share (Wall Street had anticipated $0.42) despite expectation-beating revenue in the fiscal third quarter, its shares were trading down 17.8% as of 11:50 a.m. EDT.

Pitney Bowes stock is blowing up today -- in a bad way. Image source: Getty Images.

The news gets worse. When calculated according to GAAP accounting standards, Pitney Bowes earned only $0.31 per share last quarter, down nearly 12% year over year. Sales for the quarter came in at 842.8 million, up a fraction of a percent and ahead of analyst estimates. Regardless, profit margins were exceptionally weak, falling 230 basis points to just 8.9% operating profit margin.

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Source: Fool.com