STAMFORD, CT – Pitney Bowes Inc . (NYSE:PBI), a global technology company, has clarified the status of its Global Ecommerce segment following incorrect media reports. The company confirmed today that it has not sold its entire Global Ecommerce segment, contrary to what was reported by certain media outlets on Thursday.
The confusion arose after reports surfaced last week suggesting that the entire segment had been divested. However, Pitney Bowes representatives acted quickly to correct the misinformation, leading to updates in the respective articles.
In a statement released today, the company clarified, “Pitney Bowes is still working to conclude its strategic review of the Company’s Global Ecommerce segment. In the meantime, it has sold the segment’s fulfillment services business, which is a small piece of the segment.”
Pitney Bowes, headquartered in Stamford, Connecticut, has been conducting a strategic review of its Global Ecommerce segment to evaluate potential options for its future. The sale of the fulfillment services business is part of this ongoing process, but it does not represent the sale of the entire segment.
The company’s stock is traded on the New York Stock Exchange under the ticker PBI, and it also has 6.70% Notes due 2043 listed as PBI.PRB. The clarification comes directly from a press release statement issued by the company and is intended to provide accurate information to investors and the public.
In other recent news, Pitney Bowes has seen a series of significant developments. The company recently announced the immediate retirement of Gregg Zegras, President of its Global E-commerce segment, amid a strategic review of this division. Concurrently, Pitney Bowes has launched a cost reduction plan, known as the "2024 Plan", which has already achieved around $70 million in savings. The company targets up to $160 million in total cost reductions by the first quarter of 2025.
Additionally, Pitney Bowes has made leadership changes with the appointment of Lance Rosenzweig as interim CEO. In terms of earnings, the company reported a significant 71% improvement in EBIT from the previous year in the first quarter of 2024, despite flat overall revenue. The company's Presort Services segment hit record revenue and EBIT, and the Global E-commerce segment saw a 20% increase in domestic parcel volumes.
InvestingPro Insights
As Pitney Bowes Inc. navigates through its strategic review of the Global Ecommerce segment, investors and market watchers are closely monitoring the company's financial health and stock performance. According to real-time data from InvestingPro, Pitney Bowes has a market capitalization of $1.22 billion, indicating its size and relevance in the market. Despite recent challenges, the company has maintained a gross profit margin of 31.45% over the last twelve months as of Q1 2024, showcasing its ability to generate earnings over its revenue.
InvestingPro Tips suggest that while the company has not been profitable over the last twelve months, analysts are optimistic about the company returning to profitability this year. Additionally, Pitney Bowes has demonstrated a strong return over the last month, with a 32.68% price total return, and an impressive 63.97% return over the last three months. These figures highlight the stock's recent performance and may be of interest to investors looking for growth opportunities.
For those considering Pitney Bowes as an investment, it's worth noting that the company has a longstanding history of dividend payments, having maintained them for 54 consecutive years. The current dividend yield stands at 2.97%, which could be attractive to income-focused investors. To explore additional insights and tips, including the 9 other InvestingPro Tips not mentioned here, visit https://www.investing.com/pro/PBI. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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