R.R. Donnelley & Sons
The 10-second takeaway
For the quarter ended March 31 (Q1), R.R. Donnelley & Sons beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
R.R. Donnelley & Sons booked revenue of $2.54 billion. The three analysts polled by S&P Capital IQ looked for net sales of $2.46 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.37. The five earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. Non-GAAP EPS of $0.37 for Q1 were 16% lower than the prior-year quarter's $0.44 per share. GAAP EPS of $0.15 for Q1 were 29% lower than the prior-year quarter's $0.21 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 22.0%, 100 basis points worse than the prior-year quarter. Operating margin was 6.4%, 40 basis points worse than the prior-year quarter. Net margin was 1.1%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $10.12 billion. The average EPS estimate is $1.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 152 members out of 182 rating the stock outperform, and 30 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 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 $14.20.
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.
- Add R.R. Donnelley & Sons to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.