R.R. Donnelley & Sons Earnings: Everything You Must Know Now

R.R. Donnelley & Sons Company (NASDAQ:RRD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

R.R. Donnelley & Sons Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.16% to $0.45 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 1.72% to $2.57 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: R.R. Donnelley & Sons Company reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $2.5 billion.

Quoting Management: “We are pleased with our results, as the revenue trend continued to improve during the second quarter. The year-over-year change in organic revenue is the best we’ve experienced in the last seven quarters, and represents a 40 basis-point improvement from the first-quarter change,” said Thomas J. Quinlan III, R.R. Donnelley’s President and Chief Executive Officer. “In addition, we continued to invest in the business, at the same time improving free cash flow by over $90 million from the same quarter last year. We remain on track to deliver our full-year guidance, including free cash flow in the range of $400 million to $500 million, that will allow us to migrate toward our targeted gross leverage range of 2.25x to 2.75x on a long-term sustainable basis.”

Key Stats (on next page)…

Revenue increased 1.32% from $2.54 billion in the previous quarter. EPS increased 21.62% from $0.37 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.43 to a profit $0.44. For the current year, the average estimate has moved up from a profit of $1.58 to a profit of $1.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)