Pitney Bowes Inc. PBI is scheduled to report its first-quarter 2025 results after market close on May 7.

For the first quarter, the Zacks Consensus Estimate for sales is pegged at $498.9 million, indicating a decline of 39.9% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at 28 cents per share, which suggests an increase of 2,900% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 96.6%.

Factors at Play

Pitney Bowes’ first-quarter results are likely to benefit from growing momentum in its Presort Services segment. Strong customers like USPS are likely to have kept the revenues stable in this segment in the to-be-reported quarter.

The closure of GEC business is likely to have benefited Pitney Bowes in reducing costs, freeing cash and deleveraging its balance sheet in the to-be-reported quarter.

Cost-cutting measures across SendTech and Presort businesses are likely to benefit the bottom line.

However, weakness in Pitney Bowes’ SendTech segment due to product migration efforts is expected to affect the first-quarter results.

Moreover, ongoing tariff wars, geopolitical tensions and macroeconomic pressure are likely to affect Pitney Bowes’ results in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Although Pitney Bowes currently carries a Zacks Rank #3, the company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

BlackLine BL has an Earnings ESP of +10.16% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report first-quarter 2025 results on May 6. The Zacks Consensus Estimate for BlackLine’s first-quarter 2025 earnings per share is pegged at 38 cents, which remained unchanged over the past 60 days. BlackLine shares have lost 22% over the past year.

Advanced Micro Devices AMD has an Earnings ESP of +0.74% and a Zacks Rank #3 at present.

It is set to report first-quarter fiscal 2025 results on May 6. The Zacks Consensus Estimate for AMD’s first-quarter 2025 earnings is pegged at 93 cents per share, unchanged over the past 60 days, indicating a rise of 30% from the year-ago quarter’s reported figure. AMD shares have declined 33.9% over the past year.

Lemonade LMND has an Earnings ESP of +3.40% and carries a Zacks Rank #3 at present.

It is set to report first-quarter 2025 results on May 6. The Zacks Consensus Estimate for LMND’s first-quarter earnings is pegged at a loss of 94 cents per share, narrowed by a penny over the past 30 days, indicating a decline of 40% from the year-ago quarter’s reported figure. LMND shares have surged 60.7% over the past year.

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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Pitney Bowes Inc. (PBI) : Free Stock Analysis Report

BlackLine (BL) : Free Stock Analysis Report

Lemonade, Inc. (LMND) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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