Revenue Performance - Revenue for Q1 2025 was $493 million, down 5% year over year, with GAAP EPS at $0.19, an improvement of $0.21 year over year[5] - Total revenue for Q1 2025 was $493.42 million, a decrease of 5% compared to $521.27 million in Q1 2024[31] - Revenue from Sending Technology Solutions decreased by 9% to $298.06 million, while Presort Services increased by 5% to $177.81 million[33] - SendTech Solutions revenue declined to $298 million, down 9% year over year, while Adjusted Segment EBITDA improved by 2% to $106 million[13] - Presort Services revenue increased by 5% to $178 million, with Adjusted Segment EBITDA rising by 30% to $64 million[17] - The impact of currency on revenue was a gain of $2.14 million, with total revenue in constant currency also reflecting a 5% decrease[33] Earnings and Profitability - Adjusted EPS for Q1 2025 was $0.33, an improvement of $0.14 or 74% year over year[5] - Adjusted diluted earnings per share increased to $0.33 in Q1 2025 from $0.19 in Q1 2024[36] - Net income for Q1 2025 was $35.42 million, compared to a net loss of $2.89 million in Q1 2024[31] Cost Management - The company eliminated $34 million in annualized costs during Q1, increasing its target for net annualized cost savings to $180 million to $200 million[9] - Research and development expenses decreased to $4.76 million in Q1 2025 from $7.63 million in Q1 2024[31] - The company reported a restructuring charge of $1.4 million in Q1 2025, down from $3.77 million in Q1 2024[31] Cash Flow and Shareholder Returns - Free Cash Flow for Q1 was a use of $20 million, consistent with the company's budget and prior guidance[5] - Free cash flow for Q1 2025 was negative $20.46 million, compared to negative $0.34 million in Q1 2024[37] - The company repurchased $15 million of shares under its $150 million authorization during Q1[9] Guidance and Future Plans - The company reaffirmed its full-year 2025 guidance, projecting revenue between $1,950 million and $2,000 million, and Adjusted EPS between $1.10 and $1.30[18] - The company aims to increase the Pitney Bowes Bank Receivables Purchase Program from $84 million to $120 million by the end of 2025[9] - The company is targeting a leverage ratio of 3.0x by Q3 2025[9] Balance Sheet - Total current assets decreased to $1.18 billion as of March 31, 2025, down from $1.32 billion at the end of 2024[32] - Total liabilities decreased to $3.81 billion as of March 31, 2025, compared to $3.98 billion at the end of 2024[32]

Company Overview - Pitney Bowes (PBI) is based in Stamford and operates in the Computer and Technology sector, with a year-to-date share price change of 14.78% [3] - The company currently pays a dividend of $0.06 per share, resulting in a dividend yield of 2.89%, which is higher than the Office Automation and Equipment industry's yield of 2.48% and the S&P 500's yield of 1.67% [3] Dividend Analysis - The annualized dividend of Pitney Bowes is $0.24, reflecting a 20% increase from the previous year [4] - Over the past five years, the company 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 earnings per share as dividends [4] Earnings Growth - Earnings growth for Pitney Bowes appears strong, with the Zacks Consensus Estimate for 2025 projected at $1.21 per share, representing a 47.56% increase from the previous year [5] Investment Opportunity - Pitney Bowes presents a compelling investment opportunity due to its attractive dividend and a strong Zacks Rank of 2 (Buy) [7]

Core Insights - Salesforce (CRM) reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.78 per share, exceeding the Zacks Consensus Estimate by 6.9% and reflecting a 21.4% increase from the previous year's earnings of $2.29 per share [1][2] - The company's fiscal fourth-quarter revenues were $9.99 billion, slightly missing the consensus mark by 0.3%, but showing a year-over-year growth of 7.5% [2][3] - Salesforce's shares declined by 5.5% in after-hours trading due to a mixed performance and a weak outlook for the upcoming fiscal periods [4] Financial Performance - Non-GAAP operating income for the fourth quarter was $3.30 billion, up 13.1% from $2.92 billion in the same quarter last year, with an operating margin expansion of 170 basis points to 33.1% [8] - The company ended the fourth quarter with cash, cash equivalents, and marketable securities totaling $14 billion, an increase from $12.76 billion at the end of the previous quarter [9] - Operating cash flow for the fourth quarter was $3.97 billion, while free cash flow reached $3.81 billion [9] Revenue Breakdown - Subscription and Support revenues, which account for 94.6% of total revenues, increased by 8% year over year to $9.45 billion [5] - Professional Services and Other revenues rose by 0.6% to $542 million [5] - Sales Cloud revenues grew by 9% to $2.13 billion, Service Cloud revenues also increased by 9% to $2.33 billion, and Marketing & Commerce Cloud revenues rose by 8% to $1.36 billion [6] Geographic Performance - Revenues from the Americas, which represent 66.6% of total revenues, grew by 8% year over year to $6.66 billion [7] - EMEA revenues increased by 7% to $2.33 billion, while Asia Pacific revenues rose by 14% to $999 million [7] Guidance and Outlook - For the first quarter of fiscal 2026, Salesforce projects total sales between $9.71 billion and $9.76 billion, indicating a growth of 6-7% year over year [12] - The company anticipates non-GAAP earnings per share in the range of $2.53-$2.55 for the first quarter, with a consensus estimate of $2.60 [13] - For fiscal 2026, Salesforce expects revenues between $40.5 billion and $40.9 billion, with a consensus estimate of $41.27 billion [13]

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]

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]

Debt Management and Refinancing - The company will redeem the remaining $96.6 million principal amount of its senior secured notes due March 2028, along with a redemption premium of approximately $4.8 million, funded with cash on hand[4] - The company plans to launch a syndication of a proposed senior secured term loan B facility in an aggregate principal amount of up to $615 million to extend maturity to 2032[7] - The company plans to refinance its existing secured revolving credit facility and term loan A facility with a new three-year $265 million secured revolving credit facility and three-year $160 million term loan A facility[7] Financial Performance and Guidance - The company expects to report full year 2024 financial results within its previously announced revenue guidance range and beat Adjusted EBIT guidance[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number: 1-03579 PITNEY BOWES INC. (Exact name of registrant as specified in its charter) State of incorporation: ...

Pitney Bowes Inc. (NYSE:PBI) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Alex Brown - Director, Investor Relations. Lance Rosenzweig - Chief Executive Officer & Board Member John Witek - Interim Chief Financial Officer Kurt Wolf - Board Member Conference Call Participants Anthony Lebiedzinski - Sidoti & Company David Steinhardt - Contrarian Capital Justin Dopierala - DOMO Capital Management Kartik Mehta - Northcoast Research Operator Good afternoon, and welcome to the P ...