R.R. Donnelley & Sons
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), R.R. Donnelley & Sons met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped to a loss.
Gross margins dropped, operating margins expanded, net margins dropped.
R.R. Donnelley & Sons recorded revenue of $2.72 billion. The two analysts polled by S&P Capital IQ foresaw a top line of $2.71 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $2.71 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The six earnings estimates compiled by S&P Capital IQ predicted $0.46 per share on the same basis. GAAP EPS were -$1.78 for Q4 compared to $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.9%, 20 basis points worse than the prior-year quarter. Operating margin was 7.0%, 80 basis points better than the prior-year quarter. Net margin was -12.0%, 1,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.60 billion. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $10.62 billion. The average EPS estimate is $1.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 138 members out of 164 rating the stock outperform, and 26 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give R.R. Donnelley & Sons a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on R.R. Donnelley & Sons is outperform, with an average price target of $20.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.