Why Pitney Bowes' Shares Popped
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 (NYS: PBI) rose 10% today after the company reported earnings that beat expectations.
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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The article Why Pitney Bowes' Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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