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Pitney Bowes (PBI) Set to Utilize AmbiSort Robotic System

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Pitney Bowes (PBI - Free Report) is working on setting up AmbiSort robots across its entire Ecommerce hubs’ footprint in the country over the next five years. The announcement follows the company’s recent execution of a pilot run of the AmbiSort robotic systems at its Bloomington, CA e-commerce hub.

By leveraging robotic systems, Pitney Bowes is looking to boost capacity as well as scalability of it operations, while simultaneously reducing costs and improving safety for its workforce.

AmbiSort robots, powered by Artificial Intelligence (AI), are designed by Ambi Robotics. In comparison with manual processes, AmbiSort robots offer double the speed of picking, placing, and packing parcels noted Pitney Bowes.

These robots will help Pitney Bowes in automating and accelerating parcel sorting to the last mile delivery providers amid a massive increase in parcel volume owing to the COVID-19 crisis. Pitney Bowes is one of the largest providers of mail processing equipment and integrated mail solutions across the world.

Pitney Bowes Inc. Price and Consensus

 

Pitney Bowes Inc. Price and Consensus

Pitney Bowes Inc. price-consensus-chart | Pitney Bowes Inc. Quote

 

Pitney Bowes’ efforts to transform its e-commerce logistics network to make it more customer friendly is expected to drive the top line in the coming days. This is expected to instill investors’ optimism in the stock.

In the past year, shares of Pitney Bowes have skyrocketed 241.5% compared with industry’s gain of 20%.

Pitney Bowes Ecommerce Business Drives Growth

Strength in Pitney Bowes Global E-commerce and Presort Services domain bodes well amid pandemic-led e-commerce boom.

In the last reported quarter, Global E-commerce revenues jumped 41% (up 40% after adjusting for currency) to $413 million, driven by robust growth across Domestic Parcel, Digital Delivery and Cross Border Services volumes. On a year-over-year basis, Presort Services of $143 million were up 2% (up 2% after adjusting for currency) driven by growth in Marketing Mail.

The earlier acquisitions of Newgistics (2017) and Borderfree (2015) buyout have bolstered its e-commerce business and added toward the overall capability mix by providing best-in-class capabilities and strengthening its portfolio.

Further, improvement in business services, driven by increased usage of shipping offerings, augurs well for the company’s prospects in the long haul.

Recently, the company roped in International Business Machines (IBM - Free Report) to help implement hybrid cloud computing across its operations and drive business growth.

However, increasing transportation costs in both Ecommerce and Presort businesses along with uncertainties related to the COVID-19 outbreak and its negative impact on consumer demand and supply chains are persistent concerns.

Zacks Rank & Stocks to Consider

At present, Pitney Bowes carries a Zack Rank #3 (Hold).     

Some better-ranked stocks in the broader sector are Zoom Video (ZM - Free Report) and Silicon Motion Technology (SIMO - Free Report) . Both the stocks flaunt a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Zoom Video and Silicon Motion is currently pegged at 15.6% and 8%, respectively.

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