What Happened?
Shares of shipping and mailing solutions provider Pitney Bowes (NYSE: PBI) fell 5.5% in the morning session after the company's third-quarter revenue missed Wall Street's expectations, overshadowing an otherwise mixed financial report.
The shipping and mailing solutions provider posted revenue of $459.7 million, an 8% year-over-year decline that fell short of the consensus estimate of $467.4 million. While the top-line results disappointed investors, the company's adjusted earnings per share of $0.31 were considered in line with expectations. Furthermore, Pitney Bowes raised its full-year adjusted EPS guidance to $1.30 at the midpoint and reconfirmed its annual revenue forecast. Despite the improved outlook, the market appeared to focus on the current quarter's revenue shortfall, which indicated ongoing demand challenges.
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What Is The Market Telling Us
Pitney Bowes’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock dropped 4% on the news that President Trump threatened a 'massive increase in tariffs' on Chinese imports, reigniting fears of a renewed US-China trade war. The unexpected comments, made in response to Beijing's plans to tighten export controls on rare-earth minerals, reversed early market gains and sent major indices tumbling. Rare-earth minerals are crucial for components used in the electronics and automotive industries. The tech sector led the losses, with the tech-rich Nasdaq Composite falling 1.7%. The threat jolted Wall Street, sparking concerns that escalating trade tensions could disrupt global supply chains and increase costs for many technology companies that rely on components or manufacturing from China.
Pitney Bowes is up 40% since the beginning of the year, but at $10.11 per share, it is still trading 21% below its 52-week high of $12.79 from July 2025. Investors who bought $1,000 worth of Pitney Bowes’s shares 5 years ago would now be looking at an investment worth $1,904.
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