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Pitney Bowes Declares Quarterly Dividends

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Price movement

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.

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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:

  • Lexmark International (LXK) — $2.3 billion
  • Xerox (XRX) — $10.1 billion
  • Canon-ADR (CAJ) — $38.2 billion

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
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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.

Projections

Pitney Bowes has made the following projections for fiscal 2016 and fiscal 2H16:

Fiscal 2016

  • 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%

Fiscal 2H16

  • 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.

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