Tony Anderson Introduction to Pitney Bowes Pitney Bowes (NYSE:PBI) has a long history, but its most recent one is not very encouraging. The company has been around for 104 years, offering Business Service such as mailing equipment, software, e-commerce technologies and shipment services. The company even owns its own bank, a tribute to the diversity of services it provides. Share price (under)performance Since its peak in 1998, around $66 per share, the company has been in a vicious decline. The last te ...

Pitney Bowes (PBI) has been beaten down lately with too much selling pressure. While the stock has lost 11.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that m ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to capitalize on established price movements for profitable trades [1] Company Overview: Pitney Bowes (PBI) - Pitney Bowes currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][6] - The stock has shown a price increase of 3.24% over the past week, aligning with the Zacks Office Automation and Equipment industry's performance [3] Price Performance - Over the last three months, PBI shares have risen by 30.54%, and over the past year, they have increased by 43.24%, significantly outperforming the S&P 500, which rose by 5.22% and 26.6% respectively [4] - The average 20-day trading volume for PBI is 1,387,450 shares, indicating a bullish trend as the stock is rising with above-average volume [4] Earnings Outlook - In the past two months, one earnings estimate for PBI has increased, raising the consensus estimate from $0.01 to $0.02 for the full year, with no downward revisions noted [5] - For the next fiscal year, one estimate has also moved upwards, reflecting positive sentiment regarding PBI's earnings potential [5]

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Group 1 - Pitney Bowes (PBI) is currently ranked 11 in the Zacks Sector Rank within the Computer and Technology group, which consists of 619 companies [1] - PBI has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market [2] - Over the past 90 days, the Zacks Consensus Estimate for PBI's full-year earnings has increased by 100%, reflecting improved analyst sentiment [2] Group 2 - Year-to-date, PBI has achieved a return of approximately 22.1%, outperforming the average return of 19.8% for the Computer and Technology sector [2] - PBI belongs to the Office Automation and Equipment industry, which is currently ranked 15 in the Zacks Industry Rank, with an average gain of 22.1% this year [3] - In comparison, Alphabet (GOOGL) has a year-to-date return of 25.6% and is part of the Internet - Services industry, which has gained 21.6% [2][3]

[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=2&type=section&id=Item%201%3A%20Financial%20Statements) The Q1 2024 financial statements show total revenue of $830.5 million, a net loss of $2.9 million, and a total stockholders' deficit of $392.4 million, with improved operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 saw total revenue of $830.5 million, a $9.7 million income before taxes, and a narrowed net loss of $2.9 million, driven by reduced SG&A expenses Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$830,509** | **$834,538** | **(0.5%)** | | Business services | $535,597 | $523,491 | +2.3% | | Support services | $96,333 | $105,284 | (8.5%) | | Equipment sales | $77,403 | $82,610 | (6.3%) | | **Total Costs and Expenses** | **$820,835** | **$845,525** | **(2.9%)** | | Selling, general and administrative | $216,197 | $242,120 | (10.7%) | | **Income (loss) before taxes** | **$9,674** | **($10,987)** | **Improved** | | **Net Loss** | **($2,885)** | **($7,737)** | **Improved** | | **Diluted Net Loss Per Share** | **($0.02)** | **($0.04)** | **Improved** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $4.10 billion, total liabilities $4.50 billion, and total stockholders' deficit widened to $392.4 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,582,098** | **$1,691,917** | | Cash and cash equivalents | $516,092 | $601,053 | | Goodwill | $729,291 | $734,409 | | **Total Assets** | **$4,103,047** | **$4,272,185** | | **Total Current Liabilities** | **$1,625,420** | **$1,730,409** | | Long-term debt | $2,076,054 | $2,087,101 | | **Total Liabilities** | **$4,495,402** | **$4,640,761** | | **Total Stockholders' Deficit** | **($392,355)** | **($368,576)** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw improved net cash used in operations at $12.5 million, with total cash and equivalents decreasing by $85.0 million to $516.1 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | ($12,525) | ($39,714) | | Net cash from investing activities | ($11,841) | ($41,413) | | Net cash from financing activities | ($58,433) | ($79,442) | | **Change in cash and cash equivalents** | **($84,961)** | **($158,220)** | | **Cash and cash equivalents at end of period** | **$516,092** | **$511,761** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment reporting changes, a $60-$70 million restructuring plan with $62 million incurred, $2.13 billion total debt, and a high 129.8% effective tax rate - Effective January 1, 2024, the company moved its digital delivery services offering from the Global Ecommerce segment to the SendTech Solutions segment, with prior period financials recast to reflect this change[40](index=40&type=chunk) - The 2023 worldwide restructuring plan is expected to cost **$60-$70 million** and be substantially complete by mid-2024, with total charges reaching **$62 million** as of Q1 2024, including **$4.3 million** charged in the current quarter[100](index=100&type=chunk)[101](index=101&type=chunk) - Total debt as of March 31, 2024, was **$2.13 billion**, and the company was in compliance with its financial covenants, including a maximum leverage ratio and a minimum interest coverage ratio[104](index=104&type=chunk) - The effective tax rate for Q1 2024 was an unusually high **129.8%**, compared to 29.6% in Q1 2023, attributed to minimal consolidated pre-tax income combined with unfavorable tax adjustments related to U.S. taxation of foreign operations[109](index=109&type=chunk) [Management's Discussion and Analysis (MD&A)](index=28&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management forecasts flat to low single-digit revenue decline for 2024, with $75-$85 million in restructuring savings, and Q1 2024 revenue at $830.5 million with improved pre-tax income [Outlook](index=29&type=section&id=Outlook) The 2024 outlook projects flat to low single-digit revenue decline, stable EBIT margins, segment-specific trends, and restructuring savings offset by higher costs - 2024 Outlook: - **Consolidated Revenue:** Flat to a low single-digit decline - **EBIT Margins:** Relatively flat compared to 2023 - **SendTech Solutions:** Revenue and profit declines expected - **Presort Services:** Revenue, margin, and profit improvement expected - **Global Ecommerce:** Revenue growth in domestic parcels, with margin and profit improvements[125](index=125&type=chunk) - The company expects annualized cost savings from its restructuring program to exceed the **$75-$85 million** target by the end of 2024, though these savings are expected to be significantly offset by higher interest, tax, and restored variable compensation costs[125](index=125&type=chunk) [Overview of Consolidated Results](index=29&type=section&id=Overview%20of%20Consolidated%20Results) Q1 2024 total revenue decreased slightly to $830.5 million, while total costs fell by $25 million, primarily due to reduced SG&A, improving net loss - Total costs and expenses decreased by **$25 million** year-over-year, mainly due to a **$26 million** reduction in SG&A from lower salary expenses, foreign currency gains, and other cost-saving initiatives[128](index=128&type=chunk) - Net interest expense increased by **$7 million** compared to the prior year, primarily due to higher interest rates[128](index=128&type=chunk) [Segment Results](index=30&type=section&id=Segment%20Results) Q1 2024 segment results show Global Ecommerce EBIT loss widening, Presort Services EBIT up 50% on 7% revenue growth, and SendTech Solutions EBIT up 6% Segment Performance - Q1 2024 vs Q1 2023 (in thousands) | Segment | Revenue Q1 2024 | Revenue Q1 2023 | Adjusted EBIT Q1 2024 | Adjusted EBIT Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | Global Ecommerce | $333,265 | $340,641 | ($35,427) | ($33,172) | | Presort Services | $169,807 | $158,902 | $40,329 | $26,905 | | SendTech Solutions | $327,437 | $334,995 | $101,278 | $95,637 | | **Total Adjusted Segment EBIT** | | | **$106,180** | **$89,370** | - **Global Ecommerce:** Revenue fell **$7 million** due to a **$30 million** decline in cross-border services, partially offset by a **$23 million** increase in domestic parcel delivery revenue, with gross margin decreasing significantly from **4.3% to 1.0%**[132](index=132&type=chunk)[133](index=133&type=chunk) - **Presort Services:** Revenue grew **$11 million** despite a **2%** volume decrease, driven by pricing actions, and gross margin expanded from **29.2% to 36.8%** due to revenue growth and automation investments[135](index=135&type=chunk)[136](index=136&type=chunk) - **SendTech Solutions:** Revenue declined **$8 million**, as lower support services and equipment sales were partially offset by a **$9 million** increase in business services revenue (shipping subscriptions and digital delivery), with gross margin percentage improving from **65.0% to 66.6%**[138](index=138&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains $538 million in liquidity and a $500 million credit facility, is debt covenant compliant, and improved operating cash flow despite continued net use - The company maintains liquidity with **$538 million** in cash and short-term investments and an undrawn **$500 million** secured revolving credit facility[142](index=142&type=chunk)[144](index=144&type=chunk) - The company is in compliance with its debt covenants, but the maximum leverage ratio covenant becomes more restrictive on June 30, 2024 (decreasing from **4.25x to 4.0x**), and the minimum interest coverage ratio becomes more restrictive on March 31, 2025 (increasing from **1.75x to 2.0x**)[143](index=143&type=chunk) - Quarterly dividends of **$0.05 per share**, totaling **$9 million**, were paid, with future dividend payments capped by the terms of the March 2028 note purchase agreement[148](index=148&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes were reported regarding market risk disclosures from the 2023 Annual Report - There were no material changes to the disclosures made in the company's 2023 Annual Report regarding market risk[150](index=150&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The Interim CEO and Interim CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[152](index=152&type=chunk)[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, such controls[152](index=152&type=chunk) [Part II - Other Information](index=36&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=36&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various litigations, with management expecting no material adverse effect on the business - The company states that the final outcome of outstanding legal matters is not expected to have a material adverse effect on its business (See Note 13)[110](index=110&type=chunk)[155](index=155&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to risk factors from 2023 Annual Report, but a new risk highlights uncertainties from recent senior management and Board changes - A new risk factor was added concerning recent changes in senior management and the Board of Directors, which could create uncertainty and negatively impact business operations, employee retention, and access to capital[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock repurchases occurred in Q1 2024, with a remaining authorization of $3 million - No common stock was repurchased in Q1 2024, and the company has a remaining authorization to purchase up to **$3 million** of its common stock[157](index=157&type=chunk) [Exhibits](index=37&type=section&id=Item%206%3A%20Exhibits) Filed exhibits include CEO/CFO certifications, a Cooperation Agreement with Hestia Capital, and various XBRL data files - Exhibits filed with the 10-Q include CEO/CFO certifications, a Cooperation Agreement with Hestia Capital Partners, and various XBRL data files[159](index=159&type=chunk)

Pitney Bowes Inc. (NYSE:PBI) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET Company Participants Philip Landler - Vice President of Investor Relations and Global Strategy Jason Dies - Interim Chief Executive Officer John Witek - Interim Chief Financial Officer Conference Call Participants Anthony Lebiedzinski - Sidoti & Company, LLC Matthew Swope - Robert W. Baird & Co. Will Brunemann - Northcoast Research Peter Sakon - CreditSights Inc. Operator Good morning, and welcome to the Pitney Bowes First ...

Pitney Bowes (PBI) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 75%. A quarter ago, it was expected that this mailing equipment and software company would post earnings of $0.03 per share when it actually produced earnings of $0.07, delivering a surprise of 133.33%.Over the last four quart ...

Pitney Bowes First Quarter 2024 Earnings May 2, 2024 Forward Looking Statements This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance. Forward-looking statements include, but are not limited to, statements about future revenue and earnings guidance and future events or conditions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ ma ...

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Pitney Bowes Inc. announced its first-quarter financial results for the period ended March 31, 2024, via a press release filed on May 2, 2024, including consolidated income statements, balance sheets, and adjusted results reconciliation - The company issued a press release on May 2, 2024, detailing its financial results[3](index=3&type=chunk) - The financial results cover the three-month periods ending March 31, 2024, and March 31, 2023[3](index=3&type=chunk) - The release includes consolidated balance sheets as of March 31, 2024, and December 31, 2023[3](index=3&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section details the exhibits accompanying the Form 8-K, primarily the financial results press release (Exhibit 99.1) and the Inline XBRL formatted cover page (Exhibit 104) - Exhibit 99.1: Press release from Pitney Bowes Inc. dated May 2, 2024[3](index=3&type=chunk) - Exhibit 104: The cover page of the Form 8-K, formatted in Inline XBRL[3](index=3&type=chunk) [Signatures](index=3&type=section&id=Signatures) The report was officially signed and authorized on May 2, 2024, by Joseph R. Catapano, Vice President and Chief Accounting Officer of Pitney Bowes Inc - The report was signed on behalf of Pitney Bowes Inc. by Joseph R. Catapano, Vice President, Chief Accounting Officer[4](index=4&type=chunk) - Date of signature: May 2, 2024[4](index=4&type=chunk)