R.R. Donnelley & Sons Company Earnings Cheat Sheet: Sees Profit Move Up

S&P 500 (NYSE:SPY) component R.R. Donnelley & Sons Company (NASDAQ:RRD) reported its results for the third 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 Third Quarter

Results: Net income for the business services company rose to $158 million (83 cents per share) vs. $53.3 million (25 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 7.8% to $2.68 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: RRD reported adjusted net income of 51 cents per share. By that measure, the company fell in line with the mean estimate of 51 cents per share. Analysts were expecting revenue of $2.67 billion.

Quoting Management: “We continue to have success in the marketplace, winning new work and expanding customer relationships. Given the challenging global economic environment and sluggish financial markets activity, we are pleased with our results,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “Despite these headwinds, we generated more than $300 million of operating cash flow in the quarter, an increase of over $90 million from last year’s third quarter. Our strong and stable cash flow funds our debt payments and our $1.04 per share annual dividend, while allowing us to reinvest in the business and prudently manage our capital structure. Execution of our previously announced accelerated share repurchase continued throughout the quarter, and we look forward to providing an update on the overall repurchase program in the coming months.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.9% to $2.62 billion in the second quarter. The figure rose 7% in the first quarter from the year earlier and climbed 4.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 53 cents versus a mean estimate of net income of 52 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 56 cents per share, down from 58 cents ninety days ago. For the fiscal year, the average estimate has moved down from $1.98 a share to $1.91 over the last ninety days.

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), and Laser Master Int’l, Inc. (LMTI).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)