Why Pitney Bowes Inc.'s Shares Popped 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 postal service equipment maker Pitney Bowes (NYSE: PBI  ) jumped 18% today after reporting earnings.

So what: Fourth-quarter revenue was up 2% to $1.0 billion and net income dropped 18% to $90.1 million, or $0.44 per share on an adjusted basis. Results were only in line with expectations, but it's the first sales growth the company has had in six years so that's why investors got so excited today.  

Now what: The digital commerce solutions business grew 17% last quarter and that's the big bright spot for investors to point to. It gave management enough confidence to predict earnings from continued operations of $1.75-$1.90 per share next year, compared to an expectation of $1.82 from Wall Street. I'm not terribly excited about a slow growing company trading at 14 times earnings so I'll sit out this move and look for better values on the market.

One stock you can buy today
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


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.

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: 2817387, ~/Articles/ArticleHandler.aspx, 10/1/2014 12:51:05 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