Pitney Bowes Set to Report Earnings with Mixed Expectations
Pitney Bowes Inc. (PBI) is set to report its first-quarter 2025 results after market close on May 7.
For this quarter, the Zacks Consensus Estimate for sales is $498.9 million, reflecting a decline of 39.9% compared to the same quarter last year.
Analysts project an earnings consensus of 28 cents per share, marking an impressive increase of 2,900% versus last year’s figures. Notably, Pitney Bowes has exceeded the Zacks Consensus Estimate in each of the last four quarters, with an average surprise rate of 96.6%.
Pitney Bowes Inc. Price and EPS Surprise
Pitney Bowes Inc. price-EPS surprise | Pitney Bowes Inc. Quote
Key Factors to Consider
Pitney Bowes’ upcoming results could show improvement thanks to its Presort Services segment, which has strong support from clients like USPS, contributing to revenue stability. Additionally, the shutdown of the GEC business may aid the company by cutting costs, freeing up cash, and enhancing its balance sheet.
Cost-cutting measures in the SendTech and Presort businesses are expected to positively impact earnings. However, challenges such as product migration within the SendTech segment may hinder overall performance this quarter.
External factors, including ongoing tariff disputes, geopolitical tensions, and macroeconomic pressures, are also anticipated to impact results.
Insights from Our Earnings Model
Utilizing the Zacks model, the combination of a positive earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically improves the likelihood of an earnings beat. Unfortunately, in this case, that is not applicable.
Currently, Pitney Bowes holds a Zacks Rank of #3, but it has an earnings ESP of 0.00%. You can find the best stocks to consider before earnings announcements with our earnings ESP Filter.
Potential Stocks to Watch
Here are some stocks to consider that show the right mix to potentially outperform in this earnings cycle:
BlackLine (BL) has an earnings ESP of +10.16% and currently holds a Zacks Rank of #3. The company is expected to report its first-quarter 2025 results on May 6. The Zacks Consensus Estimate for BlackLine’s earnings per share is 38 cents, unchanged over the past 60 days. Over the past year, BlackLine shares have decreased by 22%.
Advanced Micro Devices (AMD) has an earnings ESP of +0.74% and a Zacks Rank of #3. AMD is also scheduled to report first-quarter fiscal 2025 results on May 6, with an earnings consensus of 93 cents per share—an increase of 30% over last year. AMD shares have seen a decline of 33.9% in the past year.
Lemonade (LMND) features an earnings ESP of +3.40% along with a Zacks Rank of #3. Set to report first-quarter 2025 results on May 6, the earnings consensus for Lemonade is a loss of 94 cents per share, narrowed by a penny over the past 30 days, indicating a 40% decline from the prior year. LMND shares have grown by 60.7% over the past year.
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This article originally published on Zacks Investment Research.
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The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
