Pitney Bowes' Q2 Revenue Lags Street View Weighed By Cross-Border Weakness

Pitney Bowes Inc. PBI reported a second-quarter FY23 sales decline of 10.9% year-on-year to $776.48 million, missing the analyst consensus of $809.61 million.

The global shipping and mailing company reported an adjusted EPS of $(0.02) loss, beating the consensus of a $(0.04) loss.

Continuing cross-border weakness in the Global Ecommerce segment weighed on quarterly performance, further ailed by decreasing in-period equipment sales in SendTech Solutions.

Global Ecommerce revenue fell 21% Y/Y to $313 million, Presort Services increased 3% to $143 million, and SendTech Solutions declined 5% to $321 million.

"Domestic parcel volumes grew close to 30 percent, which we expect to continue in the second half. Importantly, the refinancing of our 2024 notes and execution of the restructuring plan announced last quarter further position the company for the long-term," said Marc B. Lautenbach, President and Chief Executive Officer. 

The company held $560.7 million in cash and equivalents as of quarter-end. 

Dividend

The company has declared a quarterly cash dividend on the company's common stock of $0.05 per share. The dividend will be paid on September 8, 2023, to stockholders of record on August 22, 2023.

Outlook

Pitney Bowes expects full-year revenue to be on the lower end of previously provided guidance (flat to mid-single-digit percentage revenue growth on a comparable basis). The company expects relatively flat growth on a comparable basis.

PBI said it is on track to deliver $75 million in annual expense savings by yearend 2024 from the previously announced restructuring plan and productivity efforts.

Price Action: PBI shares are trading lower by 6.45% at $3.55 on the last check Thursday.