R.R. Donnelley & Sons Co. Earnings Cheat Sheet: Profit Decreases

S&P 500 (NYSE:SPY) component R.R. Donnelley & Sons Company (NASDAQ:RRD) reported its results for the second quarter. R.R. Donnelley & Sons Company provides communications and consultative business services to private and public sectors worldwide.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

R.R. Donnelley & Sons Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for the business services company fell to $12.2 million (6 cents per share) vs. $88.8 million (42 cents per share) a year earlier. This is a decline of 86.3% from the year earlier quarter.

Revenue: Rose 8.9% to $2.62 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: RRD reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 51 cents per share. Analysts were expecting revenue of $2.66 billion.

Quoting Management: “Our platform, like our customers, felt the economic challenges during the second quarter,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “Over the past month or so, customer demand in a variety of our offerings appears to be firming up, so we begin the second half of the year with renewed optimism.” Quinlan continued, “The share repurchase program and successful bond offering that we launched in the second quarter demonstrate the confidence that management and investors alike have in our ability to continue to drive strong cash flow. We remain on track to deliver approximately $600 million of operating cash flow less capital expenditures for the full year.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 7% to $2.58 billion in the first quarter. The figure rose 4.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 1% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 33 cents versus a mean estimate of net income of 36 cents per share.

Competitors to Watch: Consolidated Graphics, Inc. (NYSE:CGX), InnerWorkings, Inc. (NASDAQ:INWK), Cenveo, Inc. (NYSE:CVO), VistaPrint NV (NASDAQ:VPRT), Multi-Color Corporation (NASDAQ:LABL), Deluxe Corporation (NYSE:DLX), Ennis, Inc. (NYSE:EBF), Courier Corporation (NASDAQ:CRRC), Champion Industries, Inc. (NASDAQ:CHMP), Centro Grafico Cegrafico SA (AMEX:CGR), Office Depot (NYSE:ODP), OfficeMax (NYSE:OMX), Staples (NASDAQ:SPLS) and FedEx Kinko’s (NYSE:FDX).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

(Source: Xignite Financials)