Pitney Bowes (PBI) has a market cap of $3.5 billion. It rose by 1.8% to close at $18.62 per share on August 5, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.6%, 7.5%, and -7.9%, respectively, on the same day. PBI is trading 0.33% below its 20-day moving average, 1.6% above its 50-day moving average, and 3.0% below its 200-day moving average.
Related ETF and peers
The ALPS Sector Dividend Dogs ETF (SDOG) invests 2.1% of its holdings in Pitney Bowes. The ETF tracks an equal-weighted index of the five highest-yielding S&P 500 securities in each sector. The YTD price movement of SDOG was 19.5% on August 5.
The market caps of Pitney Bowes’ competitors are as follows:
Pitney Bowes declared dividends
Pitney Bowes has declared the following dividends:
- a quarterly cash dividend of $0.19 per share on its common stock, to be paid on September 12, 2016, to shareholders of record on August 22, 2016
- a quarterly cash dividend of $0.53 per share on its $2.12 convertible preference stock, to be paid on October 3, 2016, to shareholders of record on September 15, 2016
- a quarterly cash dividend of $0.50 per share on its 4% convertible cumulative preferred stock, to be paid on November 1, 2016, to shareholders of record on October 15, 2016
Performance of Pitney Bowes in 2Q16
In 2Q16, Pitney Bowes reported total revenue of $835.9 million, a fall of 5.1% from the total revenue of $880.9 million in 2Q15. Revenue from the SMB (Small and Medium Business) Solutions segment fell by 8.3%, and revenue from Digital Commerce Solutions rose by 10.6% between 2Q15 and 2Q16.
Its net income and EPS (earnings per share) fell to $53.6 million and $0.28, respectively, in 2Q16, compared with $151.8 million and $0.75, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EPS of $199.4 million and $0.39, respectively, in 2Q16, a fall of 10.4% and 13.3%, respectively, from 2Q15.
Pitney Bowes’s cash and cash equivalents and inventories rose by 3.9% and 25.0%, respectively, between 4Q15 and 2Q16. Its current ratio rose to 1.1x in 2Q16 from 1.0x in 4Q15.
Pitney Bowes has made the following projections for fiscal 2016 and fiscal 2H16:
- revenue growth in the range of -1% to -3% on a constant currency basis
- adjusted EPS in the range of $1.75–$1.82
- free cash flow in the range of $400 million–$450 million
- annual tax rate in the range of 33%–35%
- revenue growth in the range of 2% to -2% on a constant currency basis
- adjusted EPS in the range of $1.03–$1.10
- free cash flow in the range of $254 million–$304 million
In the next part of this series, we’ll discuss Ford Motor.