Please ensure Javascript is enabled for purposes of website accessibility

What Does Wall Street See for R.R. Donnelley & Sons's Q1?

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

R.R. Donnelley & Sons (Nasdaq: RRD) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict R.R. Donnelley & Sons's revenues will contract -2.5% and EPS will decrease -27.3%.

The average estimate for revenue is $2.46 billion. On the bottom line, the average EPS estimate is $0.32.

Revenue details
Last quarter, R.R. Donnelley & Sons chalked up revenue of $2.66 billion. GAAP reported sales were 2.2% lower than the prior-year quarter's $2.72 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.43. GAAP EPS were -$4.70 for Q4 versus -$1.78 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 22.0%, 90 basis points worse than the prior-year quarter. Operating margin was 6.7%, 90 basis points worse than the prior-year quarter. Net margin was -31.9%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.11 billion. The average EPS estimate is $1.58.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 151 members out of 182 rating the stock outperform, and 31 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give R.R. Donnelley & Sons a green thumbs-up, and seven 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 $12.67.

Can your portfolio provide you with enough income to last through retirement? You'll need more than R.R. Donnelley & Sons. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

R.R. Donnelley & Sons Company Stock Quote
R.R. Donnelley & Sons Company
RRD

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.