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Pitney Bowes changing stripes: Cramer

Who says a company can't change its stripes? Cramer says this transformation is eye-opening.

The Mad Money host is talking about Pitney Bowes.

"You may think of this company as a major player in the snail mail business, selling mail meters and similar kinds of equipment, but Pitney Bowes is also becoming a digital communications powerhouse," said Cramer.

Source: Pitney Bowes | Facebook

One of the higher profile digital initiatives involves a strategic partnership with eBay.

"Our software is right under the covers on eBay," explained Marc Lautenbach, the President and CEO of Pitney Bowes during an interview on "Mad Money." "The software classifies the asset, how much it costs to ship and what the duties may be. It takes all the friction out of trade."

The total opportunity in digital appears to be significant.

"Our digital business grew 23% in the most recent quarter," Lautenbach said. "In aggregate it represents $25 billion in addressable opportunity."

But that doesn't mean Pitney Bowes has forsaken its tried and true equipment business. "People still have postage meters," Cramer said.

"That's a very good business. It throws off lots of cash and we've got very high share," Lautenbach said.

Cramer finds these and other prospects potentially money making. And he believes recent earnings confirm his optimism.

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The company reported $0.42 earnings per share for the quarter, beating the analysts' consensus estimate of $0.41 by $0.01. The company had revenue of $937.00 million for the quarter, compared to the consensus estimate of $937.60 million. During the same quarter last year, the company posted $0.42 earnings per share. Pitney Bowes's revenue was up 3.0% compared to the same quarter last year.

All told, Cramer likes what he sees. "It's still early innings. I think there's more upside here."



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