Shares of Pitney Bowes, Inc. (NYSE:PBI) are taking a spill today after the office solutions supplier posted a disappointing fourth-quarter report. As of 11:34 a.m. EST, the stock was down 21.5%.
Pitney Bowes said earnings per share improved from 10% to $0.53, but that was short of estimates at $0.58. Revenue in the quarter declined 5% from a year ago to $887 million, missing estimates of $920 million, as the company saw sales fall in all of its product categories except Business Services.
CEO Mark Lautenbach conceded that the results in the quarter were "not what we wanted or expected," though he did say the company closed the year with much of the "heavy lifting" from its transformation initiatives completed.
Wall Street seemed to punish the stock in particular because of weak 2017 guidance, which reflected more conservative guidance thanks to weakness in the Software Solutions segment. Pitney Bowes reduced its full-year EPS guidance from $1.80-$1.95 to $1.70-$1.85, calling for a modest increase from adjusted EPS of $1.68 in 2016.
Pitney Bowes stock never recovered from sharp losses after the recession, and shares have been sliding consistently for three years. The stock is now trading at a P/E of just over 7 with a solid dividend yield near 5%, making it a good bet for dividend investors.