Company Overview - Pitney Bowes (PBI) is headquartered in Stamford and operates in the Computer and Technology sector [3] - The stock has experienced a price change of 10.36% since the beginning of the year [3] Dividend Information - Pitney Bowes currently pays a dividend of $0.06 per share, resulting in a dividend yield of 3% [3] - This yield is higher than the Office Automation and Equipment industry's yield of 2.42% and the S&P 500's yield of 1.76% [3] - The company's annualized dividend of $0.24 has increased by 20% from the previous year [4] - Over the last 5 years, Pitney Bowes has increased its dividend once on a year-over-year basis, with an average annual increase of 1.05% [4] - The current payout ratio is 36%, indicating that the company paid out 36% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Pitney Bowes' earnings for 2025 is $1.21 per share, reflecting a year-over-year earnings growth rate of 47.56% [5] Investment Appeal - Pitney Bowes is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Pitney Bowes (PBI) currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - PBI has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Group 2: Performance Metrics - Over the past week, PBI shares increased by 4.94%, while the Zacks Office Automation and Equipment industry declined by 0.53% [6] - In the last month, PBI's price rose by 14.71%, significantly outperforming the industry's 2.93% [6] - PBI shares have risen by 27.13% over the past quarter and 142.23% over the last year, compared to the S&P 500's -4.73% and 14.1% respectively [7] Group 3: Trading Volume - PBI's average 20-day trading volume is 3,170,652 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, one earnings estimate for PBI increased, while none decreased, raising the consensus estimate from $1.08 to $1.21 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [10] Group 5: Conclusion - Given the strong performance metrics and positive earnings outlook, PBI is positioned as a promising investment opportunity with a Momentum Score of B [12]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2][3] Zacks Style Scores - Each stock is rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings [5] - The Momentum Score assesses trends in stock prices and earnings estimates to identify favorable investment opportunities [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to select the best options [9] Investment Example: Pitney Bowes (PBI) - Pitney Bowes is a leading provider of mail processing equipment and integrated mail solutions, currently rated 1 (Strong Buy) with a VGM Score of A [11] - The stock has a Momentum Style Score of B and has increased by 14.7% in the past four weeks [11] - Analysts have revised PBI's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.13 to $1.21 per share, and the company has an average earnings surprise of 96.6% [12]

Market Overview - The U.S. stock market is experiencing a strong bull run, driven by economic resilience and increased CEO confidence, which reached an index of 60 in Q1 2025, indicating "confident optimism" [1] - The economy expanded by 2.8% in Q4 2024, supported by a robust labor market, while a 1% rate cut by the Federal Reserve has lowered borrowing costs, promoting business expansions and consumer spending [1] - Inflation is trending towards the Fed's 2% target, leading to optimism about further monetary easing in 2025 [1] Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers as market trends strengthen [2] - High-performing stocks with strong relative price momentum are seen as advantageous in navigating the ongoing bull market [2] Recommended Stocks - **Pitney Bowes (PBI)**: Expected earnings growth of 47.6% for 2025, with a trailing four-quarter earnings surprise of approximately 96.6% and a share price increase of 177.4% over the past year [10][11] - **The Hanover Insurance Group (THG)**: Projected earnings growth of 7.7% for 2025, with a trailing four-quarter earnings surprise of about 21.7% and a share price increase of 20.2% over the past year [12][13] - **EnerSys (ENS)**: Anticipated EPS growth rate of 19.8% for fiscal 2025, with a 12.8% share price increase over the past year [14][15] - **First Financial Corporation (THFF)**: Expected earnings growth of 39% for 2025, with a share price increase of 38.6% over the past year [16][17] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks that have historically outperformed the S&P 500 are considered, with a minimum price of $5 and adequate trading volume [9][10]

Strategic Transformation - The Company has undergone a strategic transformation over the past year, impacting its business segments significantly[17] Financial Solutions - SendTech Solutions offers financing alternatives for equipment and product purchases, including a revolving credit solution for postage payments[17] Postal Services - The Company is the largest workshare partner of USPS, providing mail sortation services that allow clients to qualify for postal workshare discounts[20] Debt and Interest Rates - Approximately 61% of the Company's debt is at fixed rates, while 39% is at variable rates, with a weighted average interest rate of 8.3% for variable rate debt as of December 31, 2024[192] Currency Impact - A 1% change in the British Pound, Euro, and Canadian Dollar would impact earnings by $4 million, $3 million, and $2 million, respectively[190] Client Base - The Company maintains a diverse client base, with no single client comprising more than 10% of consolidated net sales in 2024 or 2023[194] Research and Development - The Company invests in research and development to enhance existing products and develop new solutions[27] Employee Benefits - The Company provides a competitive benefits package, including medical, dental, and life insurance, to attract and retain talent[32] Workforce - The Company has approximately 7,200 employees, with 78% located in the United States[31] Regulatory Environment - The Company is subject to various regulations, including those from postal authorities and financial institutions, impacting its operations[29]

Group 1 - Justin Dopierala is the President and Founder of DOMO Capital, with a strong academic background including a Bachelor of Science and an MBA from Concordia University [1] - DOMO Capital Management has been operational since 2008, with Justin serving as the portfolio manager since its inception [1] - The investment philosophy of DOMO is influenced by principles from "The Intelligent Investor," emphasizing long-term investment strategies over short-term market fluctuations [1] Group 2 - PBI is currently included in the DOMO Concentrated All Cap Value Composite, indicating a strategic investment position [3] - DOMO Capital Management is a state-registered investment adviser in multiple states, ensuring compliance with regulatory requirements [3] - The firm emphasizes the importance of individualized investment strategies tailored to specific investor situations [3]

Core Viewpoint - Pitney Bowes (PBI) has experienced a significant stock price increase of 46.6% over the past month, outperforming both the Zacks Computer and Technology sector and the S&P 500, indicating strong investor confidence in the company's position in the global logistics and technology market [1]. Group 1: Customer Base and Partnerships - Pitney Bowes boasts a broad customer base, serving over 90% of Fortune 500 companies, which underscores its market leadership [2]. - Collaborations with major industry players such as Amazon, eBay, Shopify, and Salesforce enhance Pitney Bowes' standing in the logistics and technology sectors [2][3]. - The company provides cross-border e-commerce logistics services to eBay in the U.S. and U.K., and its partnership with Amazon Web Services (AWS) facilitates seamless integration with advanced technologies [3]. Group 2: Strategic Divestiture - Pitney Bowes has divested its underperforming Global Ecommerce (GEC) segment, recognizing it as a liability, with a one-time exit cost of $165 million, of which $120 million has been paid in 2024 [5][6]. - This strategic move allows the company to concentrate on higher-margin businesses, improving profitability and creating a leaner operational structure [6]. Group 3: Financial Performance - The company has made strides in addressing its long-term debt and enhancing liquidity, repatriating $117 million from overseas operations and accumulating over $100 million in excess cash for debt reduction [8][9]. - In the fourth quarter of 2024, Pitney Bowes reported a 33% year-over-year increase in adjusted operating profit to $114 million, with a margin expansion of 580 basis points to 22.2% [10]. Group 4: Earnings Growth Potential - Analysts have raised the Zacks Consensus Estimate for 2025 earnings by 9 cents to $1.21, reflecting a projected 47.6% year-over-year growth [11]. - The stock has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 96.64% [11]. Group 5: Valuation and Investment Opportunity - Despite its strong performance, Pitney Bowes trades at a forward 12-month P/E ratio of 8.70X, significantly lower than the sector average of 26.19X and the S&P 500 average of 22.66X, indicating an attractive valuation [12]. - The stock is currently trading above its 50-day moving averages, suggesting a bullish trend [12]. Group 6: Conclusion - Pitney Bowes is positioned for sustainable growth due to its strategic realignment, cost-cutting initiatives, and strong partnerships, making it a compelling investment opportunity [14][15].

Core Viewpoint - Investors are encouraged to consider Pitney Bowes (PBI) due to solid improvements in earnings estimates and positive short-term price momentum, which may continue as the earnings outlook improves [1] Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Pitney Bowes' earnings prospects, which is expected to positively influence its stock price [2] - There has been strong consensus among analysts in raising earnings estimates, significantly increasing the consensus estimates for the next quarter and the full year [3] Current-Quarter Estimates - For the current quarter, Pitney Bowes is expected to earn $0.28 per share, reflecting a remarkable change of +2900% from the previous year's reported figure [4] - Over the last 30 days, one estimate has increased with no negative revisions, leading to a 7.69% rise in the Zacks Consensus Estimate [4] Current-Year Estimates - The expected earnings for the full year are $1.21 per share, representing a +47.56% change from the prior year [5] - Similar to the current quarter, one estimate has moved higher in the past month with no negative revisions, resulting in a 12.04% increase in the consensus estimate [5] Zacks Rank - Pitney Bowes currently holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating a strong potential for outperformance [6] - Research shows that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6] Stock Performance - Over the past four weeks, Pitney Bowes shares have increased by 34.1%, suggesting that investors are responding positively to the company's impressive estimate revisions [7]

Pitney Bowes Fourth Quarter and FY 2024 Earnings February 11, 2025 Pitney Bowes | Fourth Quarter and FY 2024 Earnings Forward-Looking Statements and Financial Presentation 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, future events or conditions, capital allocation strategy and expected cost savings, elim ...

Financial Data and Key Metrics Changes - Full year revenue was $2.027 billion, down 3% year-over-year, in line with expectations for a softer point in SendTech's product cycle [8][32] - Adjusted EPS was $0.82, up $0.21, or 34%, over the prior year [9][32] - Adjusted EBIT was $385 million, up $77 million, or 25%, over the prior year [9][32] - Free cash flow was $290 million, excluding $86 million of restructuring payments [9][32] Business Line Data and Key Metrics Changes - In SendTech, shipping technology-related revenue grew 18% in Q4, while equipment revenue declined 16% year-over-year [24][36] - Presort revenue for the full year was $663 million, up from $618 million the prior year, with adjusted EBIT for the quarter increasing by 52% year-over-year [40][41] - SaaS subscription revenue in SendTech improved by 33% year-over-year, ending the year with almost 200,000 paid subscribers [37] Market Data and Key Metrics Changes - The company expects to generate between $1.95 billion and $2 billion in revenue for 2025, representing a modest decline year-over-year [42] - Shipping-related revenues in SendTech are expected to continue growing at double-digit rates, partially offsetting product migration headwinds [48] Company Strategy and Development Direction - The company is focused on simplicity, speed, and sales as guiding principles for growth in 2025 [20][21] - Plans to continue investing in organic growth initiatives and target opportunistic tuck-in acquisitions [28] - The exit from the Global Ecommerce segment is seen as a critical step in simplifying the business structure [12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the opportunities for Pitney Bowes in 2025 and beyond, emphasizing a solid foundation for growth [19][52] - The leadership team is committed to enhancing shareholder value through prudent capital allocation and returning capital to shareholders [29] Other Important Information - The company has removed approximately $30 million in annualized costs during Q4, with a total expected savings of $170 million to $190 million [14][46] - The company has successfully paid off $275 million in Oaktree notes and refinanced near-term maturities [18] Q&A Session Summary Question: Clarification on one-time items affecting EBIT - Management noted that better performance and additional savings contributed to the EBIT outperform, with overhead savings recognized quicker than expected [58] Question: Sustainability of Presort EBIT margins - Management indicated that the high EBIT margins seen in recent quarters are expected to be sustainable, driven by pricing and productivity improvements [61] Question: Future growth in SendTech - Management anticipates that by 2026, shipping growth will outweigh declines in the mailing business, leading to improved margins [64] Question: Capital allocation and share repurchase timing - The $150 million share repurchase program will be executed opportunistically over the next three years, with a focus on market conditions [77] Question: Volume expectations for Presort in 2025 - Management expects similar volumes in Presort, with a focus on the mix of mail types impacting overall performance [88] Question: Future of SendTech and potential Investor Day - Management acknowledged the need for better communication regarding SendTech's growth opportunities and is considering an Investor Day [82] Question: Corporate expenses decline explanation - The decline in corporate expenses was primarily due to cost savings initiatives, with a small impact from compensation accrual adjustments [114] Question: Pension charge explanation - A lump sum campaign in the U.S. and Canada improved the company's pension funding position, resulting in a non-cash charge of $91 million [121] Question: Future refinancing of debt - Management will evaluate all debt securities opportunistically, focusing on nearer-term maturities and more expensive debt [130]