R.R. Donnelley & Sons
The 10-second takeaway
For the quarter ended March 31 (Q1), R.R. Donnelley & Sons missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins grew, net margins increased.
R.R. Donnelley & Sons booked revenue of $2.52 billion. The four analysts polled by S&P Capital IQ predicted a top line of $2.56 billion on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $2.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.44. The six earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.21 for Q1 were 31% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.0%, 130 basis points worse than the prior-year quarter. Operating margin was 6.8%, 60 basis points better than the prior-year quarter. Net margin was 1.5%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.58 billion. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $10.56 billion. The average EPS estimate is $1.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 173 rating the stock outperform, and 31 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give R.R. Donnelley & Sons a green thumbs-up, and six 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 $18.00.
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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.