New appointment in Pitney Bowes
On December 14, 2016, Stanley J. Sutula III has been appointed as Pitney Bowes’s Executive Vice President and Chief Financial Officer, effective February 1, 2017, and will take care of the global financial team and investor relations. Sutula will report to the company’s president and chief executive officer Marc B. Lautenbach.
Pitney Bowes (PBI) fell 1.3% to close at $15.50 per share on December 14, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -0.39%, 4.9%, and -21.5%, respectively, on the same day.
PBI is now trading 3.1% above its 20-day moving average, 2.0% below its 50-day moving average, and 13.3% below its 200-day moving average. It has a market cap of $2.9 billion.
Related ETF and peers
The ALPS Sector Dividend Dogs ETF (SDOG) invests 2.1% of its holdings in Pitney Bowes. The YTD price movement of SDOG was 24.0% on December 14.
The market caps of Pitney Bowes’ competitors are as follows:
Pitney Bowes’s performance in 3Q16
Pitney Bowes reported total revenue of $839.0 million in 3Q16, a YoY (year-over-year) 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, as compared to $89.3 million and $0.44, respectively, in 3Q15. It reported adjusted EPS of $0.44 in 3Q16, a YoY 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, as compared with 1.0x in 4Q15.
Pitney Bowes has 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 also 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.
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
In the next part of this series, we’ll look at Packaging Corporation of America (PKG).