Pitney Bowes Inc. (NYSE: PBI) shares are down after the company reported its 2017 second-quarter earnings on Tuesday, revealing a profit that missed estimates.
Pitney Bowes is a leading provider of mail processing equipment and integrated mail solutions. Its supplies and software enable its customers to optimize the flow of physical and electronic mail, documents and packages across their operations. The company said revenue for the quarter fell 1.7% to $821.37 million, down from $835.89 million last year.
The company posted a profit of $61.05 million, or 33 cents per share, a decline from the second quarter of the previous year, which stood at $77.14 million, or 39 cents per share. Analysts, on average, had expected earnings of 36 cents per share.
Pitney Bowes has seen slow but trending growth in its software business, and over the past few quarters, its Digital Commerce Solutions has been performing at the top-line. However, decline in the mailing business will likely slow the corporation's growth in the near future. According to Nasdaq.com, lower recurring supplies revenues are expected to hurt the mailing business, going forward. In addition, escalating marketing expenses in relation to the ERP implementation program is likely to act as an overhang.
Shares of Pitney Bowes are down 15 percent to $13.28.