Pitney Bowes inventory plummets after reporting e-commerce contraction (NYSE:PBI)

Pitney Bowes (NYSE:PBI) posted a miss on prime and backside strains for the third quarter amid a pointy slowdown in its e-commerce enterprise.

The Stamford, Connecticut-based logistics firm noticed income decline 5.1% for the prior yr, arising $36.02M wanting analyst expectations alongside a backside line miss that displays $0.00 in adjusted EPS towards an expectation of $0.02.

“Just like final quarter, SendTech and Presort each grew on a continuing foreign money foundation and International Ecommerce declined because of worldwide macroeconomic challenges, together with US greenback energy,” Marc B. Lautenbach. “The resilience of SendTech and Presort will serve us effectively going ahead and the improved service ranges we’re seeing in our Home Parcel community inside International Ecommerce will drive substantial quantity and margin enlargement.”

International e-commerce gross sales slid 11% from the prior yr whereas the section’s margins additionally fell as a result of decrease volumes.

“The section income decline was largely pushed by decrease volumes, particularly Cross-border, the place US Greenback energy is pressuring worldwide ecommerce exercise,” the corporate acknowledged. “Home Parcel volumes have been 36 million within the quarter, 4 million decrease in comparison with prior yr, with revenues growing 2 p.c pushed by higher per parcel yields.”

Shares of Pitney Bowes (PBI) slumped 12.54% in premarket buying and selling on Tuesday.

Nonetheless, the corporate maintained full-year steering as beforehand acknowledged. The steep slide for the inventory on the report marks the second consecutive earnings-driven slide.