R.R. Donnelley & Sons Company Earnings: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component R.R. Donnelley & Sons Company (NASDAQ:RRD) reported net income above Wall Street’s expectations for the first 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 for the First Quarter

Results: Net income for R.R. Donnelley & Sons Company rose to $37.4 million (21 cents per share) vs. $33.9 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 10.3% from the year-earlier quarter.

Revenue: Fell 2.3% to $2.52 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: R.R. Donnelley & Sons Company reported adjusted net income of 44 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. Analysts were expecting revenue of $2.57 billion.

Quoting Management: “We are pleased with our first-quarter results,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “The revenue trend improved from the fourth quarter of 2011, reflecting a favorable trend in customer demand and new customer wins that we added to the platform during the quarter. We expect this improved trend, in conjunction with our continuing cost management efforts, to have a positive impact going forward.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 8.9%.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 46 cents versus a mean estimate of net income of 44 cents per share.

The company reported a profit last quarter, following a quarter of being in the red. In the third quarter of the last fiscal year, the company booked a net loss of $158 million, or a loss of 83 cents per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 45 cents per share from 44 cents. For the fiscal year, the average estimate has moved up from $1.75 a share to $1.83 over the last ninety days.

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

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