Is PBI's Q1 2025 EPS forecast achievable?
4/4/2025 05:24pm
Pitney Bowes Inc.'s (PBI) Q1 2025 EPS forecast of $0.28 appears achievable based on the following points:
1. **Recent Performance**: PBI's adjusted EPS has shown a significant increase, from $0.61 in Q1 2024 to $0.82 in Q4 2024, indicating a strong earnings trend.
2. **Cost-Cutting Efforts**: The company's cost-cutting efforts have paid off, as evidenced by the increase in adjusted EBIT and free cash flow. Adjusted EBIT rose by 25% to $385 million, and free cash flow was $290 million after excluding restructuring payments.
3. **Revenue Outlook**: Despite a slight decline in revenue, PBI's revenue beat expectations in Q4 2024, with a revenue of $516 million surpassing the forecast. This suggests that the company's revenue stream remains robust.
4. **Dividend Increase**: PBI announced a dividend increase, with a quarterly dividend of $0.06, which could indicate confidence in the company's financial stability and its ability to sustain and grow its dividend payments.
In conclusion, PBI's Q1 2025 EPS forecast of $0.28 seems achievable considering the company's recent financial performance, cost-cutting initiatives, and revenue outlook.