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How Did Pitney Bowes Perform in 3Q16?

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Price movement

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.

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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 14.6% on November 1. The market caps of Pitney Bowes’ competitors are as follows:

  • Lexmark International (LXK) — $2.5 billion
  • Xerox (XRX) — $9.6 billion
  • Canon (CAJ) — $40.3 billion

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.

Projections

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

Next, we’ll discuss Apple (AAPL).

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