Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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.