Pitney Bowes (PBI) has a market cap of $2.7 billion. It fell 18.5% to close at $14.54 per share on November 1, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -16.6%, -19.5%, and -27.3%, respectively, on the same day. PBI is trading 16.7% below its 20-day moving average, 18.7% below its 50-day moving average, and 21.2% 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 14.6% on November 1. The market caps of Pitney Bowes’ competitors are as follows:
Performance of Pitney Bowes in 3Q16
Pitney Bowes reported total revenue of $839.0 million in 3Q16, a fall of 3.5% from the total revenue of $869.5 million in 3Q15. Revenue from SMB (Small & Medium Business) Solutions and Digital Commerce Solutions fell 7.0% and 0.52%, respectively, and revenue from Enterprise Business Solutions rose 0.92% between 3Q15 and 3Q16.
Its net income and EPS (earnings per share) fell to $65.5 million and $0.35, respectively, in 3Q16, compared with $89.3 million and $0.44, respectively, in 3Q15. It reported adjusted EPS of $0.44 in 3Q16, a rise of 2.3% over 3Q15.
Pitney Bowes’s cash and cash equivalents and inventories rose 52.5% and 22.5%, respectively, between 4Q15 and 3Q16. Its current ratio rose to 1.2x in 3Q16, compared with 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 of $1.75–$1.82
- free cash flow of $400 million–$450 million
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