R.R. Donnelley & Sons Earnings: Here’s Why Investors Like These Results

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. Shares are up 3.92%.

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R.R. Donnelley & Sons Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 15.91% to $0.37 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 0.54% to $2.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: R.R. Donnelley & Sons Company reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $2.46 billion.

Quoting Management: “Our first-quarter results allow us to reaffirm our full-year guidance for revenue, margin and free cash flow,” said Thomas J. Quinlan III, R.R. Donnelley’s President and Chief Executive Officer. “We continue to focus our efforts to drive free cash flow, and remain committed to our targeted gross leverage range of 2.25x to 2.75x on a long-term sustainable basis.”

Key Stats (on next page)…

Revenue decreased 4.55% from $2.66 billion in the previous quarter. EPS decreased 13.95% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.40. For the current year, the average estimate has moved down from a profit of $1.70 to a profit of $1.58 over the last ninety days.

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