Overview

* Pitney Bowes ( PBI ) Q2 revenue down 6% yr/yr, missing analyst expectations, per LSEG data

* Adjusted EPS for Q2 misses analyst estimates, per LSEG data

* Co increases share repurchase authorization to $400 mln, raises dividend

Outlook

* Pitney Bowes ( PBI ) lowers full-year revenue guidance to $1.90 bln-$1.95 bln

* Company raises adjusted EPS guidance to $1.20-$1.40

* Pitney Bowes ( PBI ) tightens adjusted EBIT guidance by lowering top end

* Company reaffirms full-year free cash flow guidance

Result Drivers

* SENDTECH SHIFT - Revenue decline attributed to end of product migration and shift from equipment placement to lease extensions

* COST REDUCTION - Adjusted EBIT and EBITDA improvements driven by simplification and cost reduction initiatives

* PRESORT GROWTH - Revenue growth in Presort Services due to higher revenue per piece and product mix

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $462 mln $475.90

Revenue mln (1

Analyst)

Q2 Miss $0.27 $0.28 (2

Adjusted Analysts

EPS )

Q2 EPS $0.17

Q2 $102 mln

Adjusted

EBIT

Q2 Free $106 mln

Cash

Flow

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the office equipment peer group is "buy."

* Wall Street's median 12-month price target for Pitney Bowes Inc ( PBI ) is $17.00, about 31.9% above its July 29 closing price of $11.57

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)