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Pitney Bowes Partners with Bonanza

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Dec. 22 2016, Updated 7:37 a.m. ET

Price movement

Pitney Bowes (PBI) has a market cap of $3.0 billion and rose 0.76% to close at $15.99 per share on December 20, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 1.8%, 9.0%, and -19.1%, respectively, on the same day.

PBI is now trading 5.1% above its 20-day moving average, 2.1% above its 50-day moving average, and 10.3% 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 YTD price movement of SDOG was 23.9% on December 20.

The market caps of Pitney Bowes’ competitors are as follows:

  • Xerox (XRX): $9.3 billion
  • Canon-ADR (CAJ): $38.7 billion

Latest news on PBI

In a press release on December 20, 2016, Pitney Bowes reported the following: “Pitney Bowes (PBI), a global technology leader that provides innovative solutions and services powering anywhere-to-everywhere commerce today, announced a partnership with Bonanza, an online marketplace for everything but the ordinary. Selling and buying just became easier for US entrepreneurs and consumers on this growing marketplace with the cross-border Borderfree Marketplace solutions and Shipping APIs for domestic shipping from Pitney Bowes.”

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The press release added: “To help their sellers, Bonanza is now using Pitney Bowes’ API technologies to power cross-border as well as domestic shipping. Leveraging the Pitney Bowes Borderfree Marketplace solution, US sellers can reach more buyers and expand their selling opportunities to more than 100 countries around the world.”

Pitney Bowes’s performance in 3Q16

Pitney Bowes reported total revenues of $839.0 million in 3Q16, which was 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, which was 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.

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Quarterly dividend

Pitney Bowes 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.

Projections

Pitney Bowes has made the following projections for fiscal 2016:

  • 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, we’ll look at Apple (AAPL).

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