Pitney Bowes Q3 Earnings Top Estimate

11/3/2009 7:53 PM ET

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(RTTNews) - Mail processing equipment and integrated mail solutions provider Pitney Bowes Inc. (PBI: News ) said Tuesday after the markets closed that its third quarter profit rose from last year, as better cost control helped offset a 12% decline in revenue. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations. A the same time, the company narrowed its full year earnings outlook range.

The Stamford, Connecticut-based company reported net income for the third quarter of $103.2 million or $0.50 per share, compared to $98.2 million or $0.47 per share for the year-ago quarter.

Income from continuing operations for the third quarter was $105.7 million or $0.51 per share, compared to $100.3 million or $0.48 per share in the prior year quarter.

Excluding items, adjusted income from continuing operations for the third quarter was $114.2 million or $0.55 per share, compared $139.4 million or to $0.67 per share in the third quarter of last year.

On average, 5 analysts polled by Thomson Reuters expected the company to earn $0.54 per share for the third quarter. Analysts' estimates typically exclude special items.

Total revenue for the third quarter fell 12% to $1.36 billion from $1.55 billion in the same quarter last year. Five analysts had a consensus revenue estimate of $1.41 billion for the third quarter.

Equipment sales for the quarter fell 24% to $225.8 million from $296.5 million a year earlier.

Mailstream Solutions revenue for the third quarter declined 14% year-over-year to $925 million. Within mailstream solutions, U.S. mailing revenue for the quarter fell 12% to $491 million, while international mailing revenue dropped 17% to $225 million.

Worldwide production mail revenue fell 18% to $126 million and software revenue declined 13% to $82 million.

Mailstream Services revenue for the third quarter declined 10% to $259 million.

For the first nine months, the company reported net income of $324.9 million or $1.57 per share, compared to $345.8 million or $1.64 per share for the same period last year.

Income from continuing operations for the nine-month period was $319.6 million or $1.54 per share, compared to $354.6 million or $1.68 per share in the prior year period.

Adjusted income from continuing operations for the nine-month period was $340.1 million or $1.64 per share, compared to $423.2 million or $2.01 per share in the corresponding year-ago period.