R.R. Donnelley & Sons Beats Analyst Estimates on EPS

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R.R. Donnelley & Sons (Nasdaq: RRD) reported earnings on Aug. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), R.R. Donnelley & Sons met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins increased, net margins grew.

Revenue details
R.R. Donnelley & Sons tallied revenue of $2.53 billion. The four analysts polled by S&P Capital IQ predicted revenue of $2.56 billion on the same basis. GAAP reported sales were 3.6% lower than the prior-year quarter's $2.62 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.49. The six earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.49 for Q2 were much higher than the prior-year quarter's $0.06 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.5%, 100 basis points worse than the prior-year quarter. Operating margin was 7.8%, 50 basis points better than the prior-year quarter. Net margin was 3.5%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.65 billion. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $10.47 billion. The average EPS estimate is $1.82.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 149 members out of 179 rating the stock outperform, and 30 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give R.R. Donnelley & Sons a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on R.R. Donnelley & Sons is outperform, with an average price target of $17.33.

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