Why Pitney Bowes Stock Extended Its Losses on May 5
On May 4 mailing and e-commerce specialist Pitney Bowes (NYSE: PBI) reported earnings. The stock fell in the low teens for the day, with steeper intraday losses along the way. On May 5 investors pushed the shares lower again, with a drop of as much as 10% before lunchtime. After a big decline stocks often bounce back a little the next day...but not this time.
The big picture for Pitney Bowes isn't great. It has been attempting to shift its business toward the digital realm, using acquisitions as it attempts to find a new, more profitable direction. That's left the company with a very heavy debt load -- long-term debt makes up roughly 99% of the capital structure. And it covered its 2019 interest costs by only about 1.3 times, which doesn't give the company a lot of room for error.
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Source Fool.com
