Pitney Bowes' Earnings Show Hidden Strength Despite Unusual Items

Pitney Bowes' (NYSE:PBI) earnings announcement seemed underwhelming despite healthy numbers. Our analysis suggests shareholders might be missing positive underlying factors. Unusual items reduced statutory profit by $172m, while a tax benefit contributed $152m. The tax benefit may not be repeated, and the unusual item may be one-off. Considering these factors, Pitney Bowes' profit result is a good guide to its true profitability, albeit conservative.