Why Pitney Bowes' Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Pitney Bowes (NYSE: PBI  ) rose 10% today after the company reported earnings that beat expectations.

So what: Revenue fell 5% in the quarter to $1.2 billion, and earnings per share rose a penny to $0.50. Both results beat estimates by the slimmest of margins, which proved enough to push the stock higher today.

Now what: The results weren't terribly impressive compared with expectations, but investors may now be seeing the value in the stock. For the full year, management expects to report earnings per share of $1.95 to $2.15, which puts the stock at a P/E multiple of seven right now. I think that's a fair price considering the results, but I'd like to see revenue moving higher before I jump into the shares.

Interested in more info on Pitney Bowes? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1971865, ~/Articles/ArticleHandler.aspx, 9/19/2014 2:19:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement