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What: Shares of integrated communications company R.R. Donnelley & Sons (Nasdaq: RRD ) fell 15% today after the company gave full-year 2011 guidance.
So what: Management expects to report 2011 revenue of $10.6 billion and full-year free cash flow in the range of $650 million to $700 million. Revenue fell short of analyst estimates of $10.7 billion, and the company doesn't yet know the impact of a pension curtailment gain and other items, so it wasn't able to forecast earnings.
Now what: The company will report earnings on Feb. 22, at which time we'll find out more about why revenue was so short of estimates. In statements today, management focused on strong cash flow numbers, which investors are obviously overlooking for now. Until we hear more during the earnings call, I am steering clear of this stock because I don't want to get in ahead of even more disappointment.
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