Pitney Bowes (PBI) has a market cap of $2.8 billion. It rose 0.86% to close at $15.18 per share on November 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 6.6%, -10.3%, and -24.1%, respectively, on the same day. PBI is trading 6.9% below its 20-day moving average, 12.0% below its 50-day moving average, and 17.1% 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 18.7% on November 11. The market caps of Pitney Bowes’s competitors are as follows:
Pitney Bowes declares dividends
Pitney Bowes has declared a quarterly cash dividend of $0.19 per share on its common stock. The dividend is payable on December 12, 2016, to shareholders of record on November 21, 2016.
The company has also declared a quarterly cash dividend of $0.53 per share on its $2.12 convertible preference stock. The dividend will be paid on January 1, 2017, to shareholders of record on December 15, 2016.
It declared a quarterly cash dividend of $0.50 per share on its 4% convertible cumulative preferred stock. The dividend will be paid on February 1, 2017, to shareholders of record on January 15, 2017.
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 and 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 of -1% to -3% on a constant-currency basis.
- adjusted EPS of $1.75–$1.82
- free cash flow of $400 million–$450 million
For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.