Postage meters and mailing equipment specialist Pitney Bowes (PBI) leapt 10% on Wednesday as investors cheered fourth-quarter earnings that beat expectations as cost-cutting efforts paid off.
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PBI hit a 52-week high at $9.95 as the company beat analyst expectation for earnings and lifted guidance for 2025.
Fourth quarter EPS of $0.32 was $0.11 better than the analyst consensus estimate as revenues declined 2% to $516 million. Cost-cutting efforts helped offset the revenue decline with PBI saying it now expects to achieve a total of $170 million to $190 million in net annualized cost savings, up from its previously announced target of $150 million to $170 million.
The 105-year-old company will take a slightly larger one-off cost from its exit from the e-commerce segment, which CEO Lance Rosenzweig said was “a critical step” in simplifying the business structure
For the full year, revenue slid 3% to $2 billion largely as expected while EPS was $0.82, and improvement of $0.21 over the prior year.
Rosenzweig noted that the company expected a slight dip in revenues as it was at “a softer point” in the product cycle of SendTech, PBI’s shipping technology business.
PBI Outlook Positive
Pitney Bowes sees Fiscal year 2025 EPS of $1.100-$1.300 versus the analyst consensus of $1.040, while revenue was guided in a range of $1.95 billion to $2 billion, in line with analyst expectations.
Is PBI a Good Stock to Buy?
PBI has more than doubled in the last year, topping the performance among peers, which includes the likes of Iron Mountain (IRM), Deluxe (DLX) and Xerox (XRX).
