Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Pitney Bowes Shares Plunged

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 metered mail king Pitney Bowes (NYSE: PBI  ) sank 14% today after its quarterly results and guidance disappointed Wall Street.

So what: The company's weak third-quarter results -- earnings fell to $76.5 million from $172.8 million in the year-ago period while revenue declined 6.5% -- coupled with downbeat guidance for the full year reinforces concerns over its growth opportunities going forward. Management blamed the weak global economy for the miss, but the persistent trend away from traditional mail toward cheaper and faster forms of communication (email, fax, etc.) is what really concerns Wall Street about the business model.

Now what: Management now sees full-year EPS from continuing operations of $1.95 to $2.15, down significantly from a prior view of $2.12 to $2.32. "We continue to take actions to drive sustainable long-term growth for Pitney Bowes and our shareholders," Chairman and CEO Murray Martin reassuredinvestors. "As we focus on the higher growth opportunities, we are growing our participation in e-commerce opportunities related to cross border parcel shipping services." Given just how rapidly the market landscape is shifting, however, I'd remain cautious about buying into that optimism.

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

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 (2)

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.

Compare Brokers

Fool Disclosure

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: 2092685, ~/Articles/ArticleHandler.aspx, 10/27/2016 1:13:23 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...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
PBI $17.68 Up +0.24 +1.38%
Pitney Bowes CAPS Rating: **