Pitney Bowes Inc. (NYSE: PBI) shares exhibited a bullish trend today following a strategic update. As of the latest market check, PBI stock surged by 13.58%, reaching $5.77.
Significant Cost Savings Identified
In the first phase of the initiative, Pitney Bowes identified approximately $70 million in cost savings, most of which have already been realized in the second quarter. These reductions include $25 million in non-recurring charges expected to be recorded in the same period. The impact of these cost cuts is anticipated to be largely evident in the company’s pre-tax earnings for the second half of 2024 and fully reflected in 2025.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
The savings are primarily derived from general corporate cost reductions, including specific cuts in the SendTech and Presort expenses. These measures exclude potential savings from the Global Ecommerce segment, where Pitney Bowes is concluding a strategic review to eliminate ongoing operating losses.
Leadership’s Commitment to Transformation
Additionally, the management has found more areas where efficiency may be gained, thus the initial savings objective has been raised from $60 million to between $120 million and $160 million. With certain activities continuing into 2025, it is anticipated that a sizable amount of these extra savings will be achieved by the end of 2024.
The company’s turnaround has been accelerated by the new leadership’s hard work since the announcement of the strategic plans. In just over a month, $70 million in long-term savings were achieved, highlighting the possibility for major value development. The leadership’s commitment to thoughtful decision-making and strategic planning is aimed at positioning Pitney Bowes for enhanced value generation from its extensive assets and business operations in 2025 and beyond.
Further details on the expanded cost rationalization program and other key initiatives will be shared during the company’s second-quarter earnings call. Pitney Bowes is still concentrating on other strategic goals, such as an expedited strategic assessment of global e-commerce, cash optimization, and balance sheet deleveraging, as was previously announced.
