R.R. Donnelley & Sons
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), R.R. Donnelley & Sons missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margins contracted, operating margins increased, net margins shrank.
R.R. Donnelley & Sons reported revenue of $2.51 billion. The four analysts polled by S&P Capital IQ anticipated revenue of $2.59 billion on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $2.68 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 $0.51. The six earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.39 for Q3 were 53% lower than the prior-year quarter's $0.83 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 22.8%, 60 basis points worse than the prior-year quarter. Operating margin was 8.0%, 90 basis points better than the prior-year quarter. Net margin was 2.8%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.74 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $10.37 billion. The average EPS estimate is $1.85.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 150 members out of 184 rating the stock outperform, and 34 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give R.R. Donnelley & Sons a green thumbs-up, and 10 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 $17.17.
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