R.R. Donnelley & Sons Company Earnings: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component R.R. Donnelley & Sons Company (NASDAQ:RRD) reported net income above Wall Street’s expectations for the second quarter. R.R. Donnelley & Sons provides communications and consultative business services to private and public sectors worldwide.

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R.R. Donnelley & Sons Company Earnings Cheat Sheet

Results: Net income for R.R. Donnelley & Sons Company rose to $88.8 million (49 cents per share) vs. $12.2 million (6 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Fell 3.6% to $2.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: R.R. Donnelley & Sons Company reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 44 cents per share. Analysts were expecting revenue of $2.57 billion.

Quoting Management: service offering to a wide range of vertical markets, coupled with our disciplined cost management, enables us to reaffirm our non-GAAP earnings per diluted share guidance in the range of $1.84 to $1.92,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “In addition, we remain on track to deliver full-year operating cash flow less capital expenditures of approximately $500 million, and expect to end the year within our targeted gross leverage range of 2.5x to 3.0x.”

Key Stats:

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 7 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the first quarter, revenue declined 2.3% to $2.52 billion from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 48 cents per share, down from 50 cents ninety days ago. At $1.81 per share, the average estimate for the fiscal year has fallen from $1.83 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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