May. 6 at 1:24 PM
$PBI
Strong quarter from Pitney Bowes.
Revenue decline improved to 3%, adjusted EBIT rose 9%, adjusted EPS rose 42%, and free cash flow swung from negative 20M to positive 44M.
SendTech is stabilizing faster than expected. Presort still looks messy, but customer wins outpaced losses in Q1 and management expects volume to turn positive by early Q3, if not sooner.
PB Bank is getting interesting too. Management is talking about balance sheet optimization, building capital, upstreaming cash to the parent, and creating risk adjusted lending opportunities across the business.
Phase 2 is still on track by the end of Q2.
Big difference between launching Phase 2 from weakness versus doing it after raising guidance, shrinking share count by 53M shares, stabilizing SendTech, and showing progress in Presort.
This is starting to look like value creation mode.
