RR Donnelley & Sons Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component RR Donnelley & Sons (NASDAQ:RRD) will unveil its latest earnings on Wednesday, August 1, 2012. R.R. Donnelley & Sons provides communications and consultative business services to private and public sectors worldwide.

RR Donnelley & Sons Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 43 cents per share, a decline of 18.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 44 cents during the last month. Analysts are projecting profit to rise by 0.5% compared to last year’s $1.81.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 44 cents per share against a mean estimate of net income of 37 cents, and the quarter before, the company exceeded forecasts by 2 cents with profit of 46 cents versus a mean estimate of net income of 44 cents.

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Stock Price Performance: Between May 30, 2012 and July 26, 2012, the stock price had risen $1.39 (13.1%), from $10.58 to $11.97. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 9, 2012, when shares rose for nine straight days, increasing 14.6% (+$1.66) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 16% (-$2.56) over that span.

A Look Back: In the first quarter, profit rose 10.3% to $37.4 million (21 cents a share) from $33.9 million (16 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 2.3% to $2.52 billion from $2.58 billion.

Analyst Ratings: With three analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 8.9% in the second quarter of the last fiscal year, 7.8% in the third quarter of the last fiscal year and 0.5%in the fourth quarter of the last fiscal year before dropping in the first quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.57 billion in revenue this quarter, a decline of 1.9% from the year-ago quarter. Analysts are forecasting total revenue of $10.47 billion for the year, a decline of 1.3% from last year’s revenue of $10.61 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.43 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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