Pitney Bowes Inc. (NYSE:PBI) is one of thebest logistics‑tech stocks to buy now. On December 3, Citizens JMP initiated coverage on Pitney Bowes with a “Market Outperform” rating and set a price target of $13.00 per share. They said the stock has room to run, pointing to what they saw as reasonable valuation estimates for 2027. That included an EV-to-free cash flow multiple of 8.7x and an EV-to-EBITDA multiple of 5.6x. The firm highlighted that Pitney Bowes holds dominant positions in its core segments, r ...

We came across a bullish thesis on Pitney Bowes Inc. on Pound the Rock Investing’s Substack. In this article, we will summarize the bulls’ thesis on PBI. Pitney Bowes Inc.'s share was trading at $9.79 as of December 1st. PBI’s trailing and forward P/E were 23.31 and 7.25 respectively according to Yahoo Finance. Costco Wholesale Corporation (COST)'s A Short Term Disappointment With Long Term Potential, Says Jim Cramer Copyright: kzenon / 123RF Stock Photo Pitney Bowes (PBI) has quietly completed a multi- ...

Core Points - Pitney Bowes Inc. has announced cash tender offers to purchase up to $75,000,000 aggregate principal amount of its outstanding 6.70% Notes due 2043 and 5.250% Medium-Term Notes due 2037 [1][3] - The tender offers are set to expire on December 19, 2025, unless extended or terminated earlier by the company [2] - The company reserves the right to adjust the maximum tender amount at any time, subject to compliance with applicable law [3][8] Tender Offer Details - The company is offering $21.25 for each $25 principal amount of the 2043 Notes and $767.50 for each $1,000 principal amount of the 2037 Notes [4] - Holders of the notes can withdraw their validly tendered notes until December 12, 2025 [6] - The settlement date for the tender offers is expected to be December 23, 2025, assuming all conditions are met [7] Financing and Fees - The company intends to finance the purchase of the tendered notes with cash on hand [8] - A soliciting dealer fee of $0.125 for each $25 principal amount of 2043 Notes and $5.00 for each $1,000 principal amount of 2037 Notes will be paid to designated retail brokers [9] Management and Agents - BofA Securities has been retained as the Dealer Manager for the tender offers, while Global Bondholder Services Corporation serves as the Information Agent and Tender Agent [10]

Looking back at my last Hold rating for Pitney Bowes Inc. ( PBI ), not much has changed to make me want to move off that neutral stance. The last few months have beenWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunities actually are. I don’t chase narratives. I follow the numbers and the b ...

Financial Performance - Total revenue for the third quarter of 2025 was $459.7 million, a decrease of 8% compared to $499.5 million in the prior year[125]. - Net income for the third quarter of 2025 was $52 million, compared to a net loss of $138 million in the prior year, which included a loss from discontinued operations of $261 million[127]. - For the first nine months of 2025, total revenue was $1.415 billion, down 6% from $1.510 billion in the same period last year[129]. - SendTech Solutions segment total revenue decreased by $21 million (6%) to $310.8 million in Q3 2025 compared to Q3 2024, with products revenue declining by $12 million (12%) and services revenue by $4 million (3%)[138]. - Presort Services segment revenue decreased by $17 million (11%) in Q3 2025, primarily due to a decline in total mail volumes[143]. - Total revenue for SendTech Solutions decreased by $79 million (8%) to $938.1 million in the first nine months of 2025 compared to the prior year, with products revenue down by $50 million (16%)[140]. Cost Management - Costs of revenue decreased by $72 million in the first nine months of 2025, primarily due to lower costs in services, products, and financing[130]. - Operating expenses for the third quarter of 2025 decreased by $129 million compared to the prior year, primarily due to lower SG&A expenses and restructuring charges[126]. - Corporate expenses decreased by $12 million (31%) to $26.4 million in Q3 2025, primarily due to lower salary expenses[148]. - Gross margin for SendTech Solutions decreased by $8 million, but gross margin percentage improved to 66.1% from 64.5% due to cost-saving initiatives[139]. Restructuring and Strategic Initiatives - The company announced a restructuring plan (the "2025 Plan") aiming to eliminate 300-400 positions, incurring charges of $30 million-$45 million, with expected annualized savings of $35 million-$50 million[121]. - The Ecommerce Restructuring involved the sale of 81% of voting interests in DRF Logistics, LLC, leading to Chapter 11 bankruptcy filings for the Ecommerce Debtors[117]. - The company anticipates lower revenue and margin in Presort Services due to a decline in volumes[119]. Cash Flow and Financing - Cash and cash equivalents totaled $336 million as of September 30, 2025, including $41 million held at foreign subsidiaries[151]. - Net cash from operating activities improved by $67 million to $161.6 million in the first nine months of 2025 compared to the prior year[153]. - The company repurchased common stock totaling $252 million in the first nine months of 2025, contributing to a decline in cash flows from financing activities by $134 million[155]. - The company expects to continue paying quarterly dividends, having paid $37 million in the first nine months of 2025[156]. Debt and Compliance - The company is required to maintain a Consolidated Interest Coverage Ratio greater than 2.00 to 1.00 and a Consolidated Secured Net Leverage Ratio of less than 3.00 to 1.00 for the fiscal quarters ending September 30, 2025, and December 31, 2025[158]. - As of September 30, 2025, the company was in compliance with the financial covenants and had no outstanding borrowings under the revolving credit facility[159]. - In August 2025, the company issued $230 million in convertible senior notes with a 1.50% annual interest rate, maturing on August 15, 2030[161]. - The net proceeds from the convertible notes issuance were $221 million, with $61.9 million used to repurchase 5.5 million shares of common stock[161]. - The company provided initial funding of $28 million through a DIP Facility related to the GEC Chapter 11 Cases, with $20 million already repaid[164]. - The company is considering various strategies to redeem the Notes due March 2027 before September 2026[160]. - The initial conversion rate for the convertible notes is 70.1533 shares of common stock per $1,000 principal amount, equating to an initial conversion price of approximately $14.25 per share[161]. - The company may incur additional debt or issue additional equity securities in the future while focusing on reducing leverage and interest costs[165]. Regulatory and Accounting Matters - There have been no significant changes to regulatory matters or critical accounting estimates disclosed in the 2024 Annual Report[167][168].

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Core Insights - Pitney Bowes reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.32 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -3.12% [1] - The company posted revenues of $459.68 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.66% and down from $499.46 million year-over-year [2] - Pitney Bowes shares have increased approximately 62.9% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $498.06 million, and for the current fiscal year, it is $1.30 on revenues of $1.92 billion [7] - The estimate revisions trend for Pitney Bowes was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Office Automation and Equipment industry, to which Pitney Bowes belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of ranked industries [8]

Financial Data and Key Metrics Changes - The company reported continued profitability improvements for the quarter, but expects revenue, EBIT, and free cash flow to come in around the low end of their range due to forecasting issues rather than operational factors [4][5] - The company is working to fix its forecasting process, which has been a long-standing issue [4][20] Business Line Data and Key Metrics Changes - In the SendTech business, revenue declines are decelerating, and the impact of the IMI migration is expected to be fully lapped by Q1 [8][9] - The Presort Services business is experiencing challenges, but the company is optimistic about regaining lost clients and improving sales volumes next year [21][22] Market Data and Key Metrics Changes - The company noted that some smaller competitors in the Presort Services market are facing financial issues, leading to increased interest in potential acquisitions [10][26] - The overall market is experiencing a decline, but the company believes it can grow through this decline by bidding for market share and making acquisitions [50][51] Company Strategy and Development Direction - The company is enhancing its talent, structure, and processes to support future growth and is evaluating profitable growth opportunities [5] - A cost-cutting initiative of $50 to $60 million is being implemented across the company, with benefits expected to be realized by the end of 2026 [25][77] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the company despite past mistakes, emphasizing a commitment to addressing issues as they arise [5][20] - The leadership team is seen as stable and committed to driving excellence within the organization [33][34] Other Important Information - The company has completed a review of its leadership team and is satisfied with the current members, who are focused on accountability and performance [32][34] - The company is actively looking for acquisition opportunities in the market, particularly in the Presort Services segment [26][27] Q&A Session Summary Question: Insight into SendTech's future trajectory - Management expects the revenue decline in SendTech to stabilize as the IMI migration issues are largely behind them [8] Question: Variations in revenue cadence from July to September - There were no significant month-to-month variations; the business is operating well despite financial results not meeting expectations [18][19] Question: Presort Services' ability to regain market share - Management is optimistic about regaining volumes in Presort Services, although it may take time to win back previously lost clients [21][22] Question: Details on cost cuts - Cost cuts will be implemented across the company, with a focus on refining operations rather than just reducing costs [25][33] Question: Alignment of incentives in Global Financial Services - Management is restructuring the organization to eliminate inefficiencies and improve the sales process [36][39] Question: Clarification on free cash flow and one-time impacts - The company confirmed that the receivable purchase program does not impact cash flow and that working capital has been a significant use of cash this year [71][74]

Pitney Bowes Third Quarter Earnings October 29, 2025 Forward-Looking Statements and Financial Presentation This document contains "forward-looking statements" about the Company's expected or potential future business and financial performance, including, but not limited to, statements about future revenue and profitability, earnings guidance, future events or conditions, capital allocation strategy, expected cost savings and efficiency improvements, and strategic initiatives and priorities. Forward-looking ...

Financial Performance - Revenue for Q3 2025 was $460 million, down 8% year over year[5] - GAAP EPS improved to $0.30, an increase of $1.06 compared to Q3 2024[5] - Adjusted EPS for Q3 2025 was $0.31, up $0.10 year over year[5] - GAAP net income reached $52 million, an improvement of $190 million year over year[5] - Total revenue for the three months ended September 30, 2025, was $459,675, a decrease of 8% compared to $499,463 in the same period of 2024[23] - For the three months ended September 30, 2025, Pitney Bowes reported a net income of $51.963 million, a significant improvement from a net loss of $138.472 million in the same period of 2024[27] - Adjusted EBITDA for the nine months ended September 30, 2025, was $413.820 million, compared to $356.671 million for the same period in 2024, reflecting a year-over-year increase of approximately 15.9%[27] - Free cash flow for the three months ended September 30, 2025, was $60.376 million, down from $73.505 million in the same period of 2024[28] - Net cash from operating activities for continuing operations was $66.848 million for the three months ended September 30, 2025, compared to $65.721 million in the same period of 2024[28] Segment Performance - The revenue for the SendTech Solutions segment was $311 million, a decline of 6% from the previous year[7] - Sending Technology Solutions revenue decreased by 6% to $310,782 in Q3 2025 from $331,376 in Q3 2024[23] - Presort Services revenue decreased by 11% to $149 million due to lower volumes and client losses[9] - Presort Services revenue declined by 11% to $148,893 in Q3 2025 compared to $166,367 in Q3 2024[23] - Total reportable segments' adjusted EBIT for Q3 2025 was $133,685, down 10% from $148,159 in Q3 2024[24] - Adjusted EBITDA for total reportable segments in Q3 2025 was $154,117, a decrease of 8% from $167,461 in Q3 2024[24] Cost Management and Strategic Initiatives - The company has identified $50 million to $60 million in additional cost savings as part of its strategic review[1] - Pitney Bowes increased its share repurchase authorization to $500 million following over $280 million in year-to-date buybacks[1] - The company has increased its dividend for the fourth consecutive quarter[1] Balance Sheet and Liabilities - Total current assets decreased to $1,149,543 as of September 30, 2025, from $1,317,954 as of December 31, 2024[22] - Total liabilities decreased slightly to $3,916,749 as of September 30, 2025, from $3,975,949 as of December 31, 2024[22] - Long-term debt increased to $2,087,966 as of September 30, 2025, compared to $1,866,458 as of December 31, 2024[22] - The company reported a stockholders' deficit of $661,538 as of September 30, 2025, compared to a deficit of $578,433 as of December 31, 2024[22] Other Financial Metrics - The impact of currency on revenue was a negative $2,101 for Q3 2025[23] - The company incurred restructuring charges of $1.836 million for the three months ended September 30, 2025, compared to $30.694 million in the same period of 2024[27] - Capital expenditures for the three months ended September 30, 2025, were $15.797 million, down from $19.438 million in the same period of 2024[28] - Interest expense, net, for the nine months ended September 30, 2025, was $112.671 million, compared to $131.986 million for the same period in 2024[27] - The company’s adjusted EBIT for the nine months ended September 30, 2025, was $329.317 million, an increase from $270.774 million in the same period of 2024[27]