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 Pitney Bowes (NYSE: PBI ) dropped 15% today after the company released earnings.
So what: First-quarter revenues dropped 4.4% to $1.17 billion, below the $1.21 billion estimate. Earnings per share came in a $0.42, which was also below the bar Wall Street had set at $0.46 per share.
Now what: To make matters worse, the company reduced its dividend to 18.75 cents per share. This is probably the right move with financials deteriorating but it's also a sign management doesn't see conditions picking up in the future. Pitney Bowes' stock looks cheap at seven times this year's estimates, but I'm afraid of a value trap and just don't see a lot of upside in the company's business.
Interested in more info on Pitney Bowes? Add it to your watchlist by clicking here.