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
So what: Revenue fell 5% in the quarter to $1.2 billion, and earnings per share rose a penny to $0.50. Both results beat estimates by the slimmest of margins, which proved enough to push the stock higher today.
Now what: The results weren't terribly impressive compared with expectations, but investors may now be seeing the value in the stock. For the full year, management expects to report earnings per share of $1.95 to $2.15, which puts the stock at a P/E multiple of seven right now. I think that's a fair price considering the results, but I'd like to see revenue moving higher before I jump into the shares.
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