STAMFORD, Conn. (AP) -- Mailing equipment and software maker Pitney Bowes Inc. posted sharply lower net income for the fourth quarter compared with results a year ago that included a big tax gain.
Its adjusted earnings beat Wall Street estimates, and its shares surged.
The company earned $110.3 million, or 55 cents per share, for the last three months of 2012, down 57 percent from $257.5 million, or $1.28 per share, in the same period a year earlier.
Its adjusted earnings were 56 cents per share in the latest quarter. Analysts surveyed by FactSet expected earnings of 51 cents per share.
Revenue fell 1 percent to $1.29 billion from $1.31 billion. Analysts expected $1.28 billion.
In a conference call with analysts, Chief Financial Officer Michael Monahan said the company expects 2013 revenue to be flat to growing about 3 percent, excluding the effects of currency fluctuations. The company expects earnings of $1.85 to $2 per share, excluding any unusual items. Analysts expected $1.92 per share.
He also said that Pitney Bowes expects that the "decline in recurring revenue streams will continue to moderate and we'll have less of a negative impact on revenue and earnings in the second half of the year."
Shares rose $1.92, or 16 percent, to $13.90 in midday trading. The stock has traded in the 52-week range of $10.34 to $19.65.
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