Can PBI sustain its EPS growth trend?

**Pitney Bowes (PBI) may face challenges in sustaining its EPS growth trend.** Here's why: 1. **Revenue Decline and Adjusted EPS Growth**: Despite a significant year-over-year increase in adjusted EPS (34% over the prior year), the company's revenue has declined by 3% year-over-year. This decline in revenue could put pressure on the sustainability of EPS growth. 2. **Analyst Expectations and Price Target**: There are no available data on analyst average price targets or consensus ratings. The absence of these indicators makes it difficult to gauge analysts' expectations, which are crucial for assessing the stock's future performance and the sustainability of EPS growth. 3. **Price and Market Capitalization**: The stock has experienced a 3% trade increase, trading as high as $9.75, but with a significant decline from its average session volume. This indicates mixed market sentiment. The stock's market capitalization of $1.70 billion suggests it is a mid-cap, which can be volatile and may not have the same level of stability as larger, more established companies. 4. **Dividend Payout Ratio and Insider Transactions**: The company has increased its dividend payout ratio, which could indicate a commitment to returning value to shareholders. However, a negative payout ratio (-21.43%) suggests that the company may be focusing on reinvestment rather than returning capital to shareholders through dividends. Insider transactions, including sales by executives, could influence investor perception and potentially impact the stock's performance. 5. **Long-term EPS Growth Rate and Recent Performance**: The 3-year EPS CAGR is not available, but the 1-year CAGR for the EPS is 84.25%. This high rate of growth over the past year does not necessarily translate to sustained growth in future years. The recent earnings report showed a significant beat on EPS expectations, but this was accompanied by a decline in revenue and a negative net margin. 6. **Market Sentiment and Future Prospects**: The stock has been traded up by 3% and has a buy rating from StockNews.com, which suggests some optimism. However, the overall market sentiment and the company's strategic direction, including its exit from GEC and the wind-down process, will be critical in determining the sustainability of EPS growth. In conclusion, while there are positive indicators such as increased dividend payouts and a recent earnings beat, the decline in revenue and the absence of analyst expectations make it difficult to confidently predict the sustainability of Pitney Bowes' EPS growth trend. The company's future performance will likely depend on its ability to reverse the revenue decline and manage its operational margins effectively.