Pitney Bowes Inc. PBI reported a fourth-quarter FY23 sales decline of 4% year-on-year to $871.58 million, beating the analyst consensus of $849.85 million.
The global shipping and mailing company reported an adjusted EPS of $0.07, beating the consensus of $0.02.
The fourth quarter revenue decline was driven by a reduction in meter base, the timing of product lifecycle, and a tough prior year comparison in shipping products.
Recurring revenue from shipping solutions grew 17% versus the prior year and helped offset the decline.
Improvements in gross margin, strong execution, and cost reduction actions drove EBIT and EBIT margin expansion in the fourth quarter.
The company exited the quarter with cash and equivalents worth $623 million.
Dividend: The company declared a quarterly cash dividend on the company’s common stock of $0.05 per share. The dividend will be paid on March 14, 2024, to stockholders of record on February 9, 2024.
Outlook: Pitney Bowes expects FY24 revenue growth to range flat to low-single digit decline and EBIT margins to remain relatively flat year over year.
The company expects incremental benefit in 2024 from the company-wide cost reduction program as savings from actions taken in 2023.
The company expects restoration of variable compensation and wage inflation to partially offset gains.
Price Action: PBI shares are trading higher by 0.4866% to $4.13 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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