Latest news with #dividend increase
Yahoo
18 hours ago
- Business
- Yahoo
Pitney Bowes Inc (PBI) Q2 2025 Earnings Call Highlights: Strategic Moves and Financial ...
Share Repurchase Authorization: Increased to $400 million. Dividend Increase: $0.01 increase for the third consecutive quarter. Free Cash Flow Guidance: Reiterated for the full year. Revenue Guidance: Reduced by $50 million. EBIT Margin Guidance: Tightened by reducing the high end of the range. EPS Guidance: Increased by $0.10. Adjusted Leverage Ratio: Now below 3x. Warning! GuruFocus has detected 4 Warning Sign with PBI. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Pitney Bowes Inc (NYSE:PBI) reported significant earnings and cash flow growth on a year-over-year basis. The company nearly exhausted its $150 million share repurchase authorization and increased its dividend for the third consecutive quarter. The Board increased the share repurchase authorization to $400 million, reflecting confidence in the company's financial position. The company has a strong free cash flow and liquidity position, with an adjusted leverage ratio now below 3x. The SaaS business within SendTech showed strong performance, with a 17% year-over-year growth for the quarter. Negative Points Pitney Bowes Inc (NYSE:PBI) reduced its revenue guidance range by $50 million due to customer losses in the Presort business. The company tightened its EBIT margin range by bringing down the high end of the range. The reduction in revenue guidance was attributed to previous management decisions not to offer price concessions to at-risk Presort customers. The Presort business has not yet reversed customer losses, impacting revenue and EBIT guidance. The overall shipping revenue was down 2.5% year-over-year for the quarter due to declines in the non-core part of the business. Q & A Highlights Q: With the new share repurchase authorization, do you intend to continue buybacks in 2025, or will you wait to see how the business performs? A: Kurt Wolf, CEO: We can't comment on future market activities, but our historical share purchases reflect where we see value in the company. Our incentive structure, with options at strike prices of $12, $14, and $16, indicates our valuation perspective. With our leverage ratio below 3.0, we have increased access to restricted payments, providing flexibility for future buybacks. Q: Does the appointment of a new CFO change the timing of the strategic review? A: Kurt Wolf, CEO: The new CFO, Paul Evans, accelerates rather than delays the review. We are conducting a thorough internal review, identifying numerous opportunities for shareholder value creation. The internal review will likely continue through 2025, with a more comprehensive review starting in 2026. Q: How is the shipping subsegment within SendTech performing, and what is the outlook for the rest of the year? A: Kurt Wolf, CEO: The overall shipping revenue was down 2.5% year-over-year due to declines in non-core business. However, core shipping grew by 6%. The SaaS business within shipping grew by 17% year-over-year, and we expect it to continue outpacing core shipping revenue. Q: Are there any structural weaknesses in the Presort business following recent customer losses? A: Kurt Wolf, CEO: The reduction in revenue guidance is largely due to competitive losses in Presort, which were avoidable. We believe Presort and SendTech are strong businesses with high profitability and competitive capabilities. We are working to regain lost customers and capture new ones, leveraging our position as a low-cost provider. Q: How do you view the potential for refinancing bonds, given the current high-yield market conditions? A: Paul Evans, CFO: We are considering refinancing options, balancing our debt's average life and coupon rates. We have the liquidity to pay off the 2027 notes, but we will evaluate the best timing and approach based on market conditions and our strategic needs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Kroger (KR) Boosts Quarterly Dividend to $0.35, Marks 19th Year of Increases
The Kroger Co. (NYSE:KR) is one of the best alternative meat stocks to invest in according to analysts. On June 26, the company declared a dividend of 35 cents per share, up from 32 cents per share in the previous payment. This translates to an annual dividend increase from $1.28 to $1.40 per share. All shareholders of record as of August 15, 2025, will receive the payment on September 1, 2025. Susan Montgomery/ This payment marks Kroger's 19th consecutive year of dividend increases since the dividend was reinstated in 2006. Over this period, the quarterly dividend has grown at a 13% compounded annual growth rate. Kroger's Chairman and CEO, Ron Sargent, stated: 'This dividend increase reflects the Board of Directors' confidence in the consistency of our operating performance, strength of our free cash flow generation, and our commitment to deliver long-term shareholder value.' The company expects adjusted free cash flow of $2.8 billion to $3 billion for fiscal 2025. This strong cash flow generation was highlighted as a key factor enabling the increase. Additionally, the company stated that its capital allocation strategy focuses on utilizing free cash flow to drive long-term, sustainable earnings growth, maintain an investment-grade debt rating, and return capital to shareholders through dividends and share repurchases. The Kroger Co. (NYSE:KR) is one of the largest supermarket operators in the US, serving over 11 million customers daily through 2,700+ stores and a robust private-label portfolio. Simple Truth, Kroger's flagship natural and organic brand, launched its Plant-Based collection in 2019, featuring items such as vegan burger patties, grinds, deli slices, cookie dough, sauces, dips, and sour cream. In January 2020, the company introduced Simple Truth Emerge, a line of fresh, plant-based meats—burger patties and grinds—positioned in the meat case, delivering approximately 20 g of pea protein per serving. While we acknowledge the potential of KR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 AI Stocks With Huge Upside Potential and 11 Best High Return Penny Stocks to Buy Now. Disclosure: None. This article is originally published at Insider Monkey.
