Why Pitney Bowes, Geron, and Cummins Slumped Today

Tuesday was another good day for stocks on Wall Street. The Dow Jones Industrials climbed further into record territory, flirting with the 22,000 milestone for much of the day. Other major benchmarks had similar returns on a percentage basis, reflecting strength in the global economy and a positive reaction from investors both in the U.S. and around the world. Yet even though the overall mood among market participants was sunny, not every stock was able to join in on the rally. Pitney Bowes (NYSE: PBI), Geron (NASDAQ: GERN), and Cummins (NYSE: CMI) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Shares of Pitney Bowes dropped 15.5% after the business services specialist reported its second-quarter financial results. The company said that revenue fell 2% from the year-earlier period, and adjusted earnings fell an even steeper 15% from where they were during the second quarter of 2016. The former mail specialist saw its legacy mail business post steep declines, and gains on the e-commerce front were insufficient to produce overall growth. Pitney Bowes also narrowed its guidance, aiming toward the higher end of its revenue projection but toward the low end of its earnings and free cash flow predictions. With the secular decline in traditional mail, Pitney Bowes has worked hard to reinvent its business, but recent hiccups reveal strong competition in the broader business services space that could hurt long-term growth prospects.

Image source: Pitney Bowes.

Source: Fool.com