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Pitney Bowes shares rise 3% on earnings, revenue beat

EditorRachael Rajan
Published 05/02/2024, 08:01 AM
© Reuters.
PBI
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STAMFORD, Conn. - Pitney Bowes Inc . (NYSE: NYSE:PBI), a global technology company offering shipping, mailing, and financial services, reported an upbeat first quarter of 2024, with revenue surpassing analyst expectations and net income showing significant improvement.

The company announced a revenue of $831 million, which was not only a 4.2% increase over the consensus estimate of $797.95 million but also remained flat compared to the same quarter last year. The adjusted earnings per share (EPS) came in at -$0.01, which was $0.04 better than the analyst estimate of -$0.05.

The company's stock responded positively to the news, climbing 3.2%.

Jason Dies, Interim Chief Executive Officer, expressed satisfaction with the company's performance, stating, "We came out of the gate strong with first quarter results that reflect enterprise-wide changes in our operating intensity and efficiency efforts." Dies highlighted a net income improvement of $5 million over the prior year and a noteworthy 71% increase in adjusted EBIT to $56 million, attributing these gains to solid segment-level performance and systematic cost reductions that led to an 8% decline in operating expenses.

The company's Presort Services segment achieved record revenue and EBIT, while the SendTech Solutions segment delivered profit increases and margin expansion. Despite a challenging market, Global Ecommerce grew domestic parcel volumes and reduced operating expenses. Dies added, "We are very encouraged by improvements in execution over the past six months and our results for the first quarter in particular."

For the full year 2024, Pitney Bowes is maintaining its guidance, expecting revenue growth to range from flat to a low-single digit decline and EBIT margins to remain relatively flat on a year-over-year basis.

Pitney Bowes continues to target savings that exceed the initial $75 to $85 million from its 2023 restructuring plan, further bolstering investor confidence in the company's cost management strategies and future financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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