Core Insights - Pitney Bowes reported earnings growth and significant capital returns to shareholders, increasing share repurchase authorization to $500 million after over $280 million in year-to-date buybacks and raising dividends for the fourth consecutive quarter [1][2] Financial Performance - For Q3 2025, the company reported GAAP EPS of $0.30, an improvement of $1.06 year-over-year, while adjusted EPS was $0.31, up $0.10 from the previous year [3][6] - Total revenue for Q3 2025 was $459.7 million, down 8% from $499.5 million in Q3 2024 [6][22] - The company achieved a GAAP net income of $52 million, an improvement of $190 million year-over-year [6][20] Business Segments - SendTech Solutions revenue decreased by 6% to $310.8 million, attributed to prior year product migration and a decline in the mailing install base [6][22] - Presort Services revenue fell by 11% to $149 million, with adjusted segment EBITDA down 24% to $42 million [6][22] Strategic Initiatives - The company made significant progress in its strategic review, identifying $50 million to $60 million in additional cost savings [1][2] - Pitney Bowes expects to achieve near the low end of its previously disclosed guidance for revenue, adjusted EBIT, and free cash flow, while aiming for the midpoint of adjusted EPS guidance [10]

Core Insights - Pitney Bowes has appointed Todd Everett as President of Sending Technology Solutions, indicating a strategic shift towards enhancing operational efficiency and growth in the shipping software sector [3][4][6] - The company has also appointed Wayne Walker as an independent member of the board, filling the vacancy left by Everett's transition from board member to executive role [4][8] - The leadership changes are part of a broader strategic review aimed at maximizing the value of Pitney Bowes Bank and its Global Financial Services business [2][6] Leadership Changes - Todd Everett brings nearly three decades of experience in logistics, shipping, and technology, previously serving as CEO of Newgistics, which was acquired by Pitney Bowes for $475 million in 2017 [4][5][7] - Wayne Walker has extensive experience as a public company director and has held various leadership roles in finance and law, enhancing the board's expertise [4][8] Strategic Review and Goals - The interim leadership structure for Global Financial Services (GFS) allows for a hands-on approach to explore pathways for maximizing the value of both the bank and non-bank components [2][6] - The company aims to leverage its financial strength and operational excellence to establish a sustainable growth trajectory for SendTech, which serves 96% of the Fortune 500 [6][9]

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]