Topic: How To Invest

Hi: What’s your view on Pitney Bowes? Thank you.

Article Excerpt

Pitney Bowes Inc., $13.58, symbol PBI on New York (Shares outstanding: 201.3 million; Market cap: $2.7 billion; www.pb.com), is the world’s largest manufacturer of postage meters and mailing equipment. The company also makes software that helps businesses communicate with their customers and analyze their spending patterns. Pitney Bowes operates through two main segments: the Small and Medium Business division (which supplies 50% of overall revenue and 75% of earnings) and the Enterprise Solutions division, which focuses on larger organizations (50% of revenue and 25% of earnings). More businesses are shifting away from mail to email and other Internet-based communications. That continues to hurt demand for Pitney Bowes’ postage meters. In response, the company has exited unprofitable businesses and cut jobs. In 2012, Pitney Bowes’ revenue fell 4.3%, to $4.9 billion from $5.1 billion in 2011. Overseas clients supply a third of the company’s revenue. If you exclude the negative impact of currency exchange rates, its revenue would have fallen 3% in 2012. Without one-time…

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