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RR Donnelley Up after Results

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Shares of R.R. Donnelley & Sons Co. (NASDAQ:RRD) are up over 2% in morning trade after the company reported quarterly profits in line with analyst estimates and quarterly revenues below analyst projections. For the quarter ended Dec. 31, the company posted a loss of $326.7 million, or $1.78 per share and compared with a profit of $27 million, or 13 cents per share, in the same quarter last year.

Adjusted earnings were $0.46 per share down from $0.51 in the fourth quarter of 2010. This was in line with estimates. For the full-year 2011 adjusted earnings per diluted share of $1.82, compared to adjusted earnings per diluted share of $1.76 in 2010. Revenue was up less than a percent to $2.72 billion from $2.71 billion, short of average analyst estimates of $2.75 billion.

Looking forward the company said it expects 2012 full-year adjusted earnings per diluted share in the range of $1.84 to $1.92. This is at the higher end of analyst forecasts that were looking for $1.82 per share in full year profits.


“Although demand softened during the last few months of the year, we are pleased with the $695 million of operating cash flow less capital expenditures that we generated in 2011,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “We’ve paid down over $400 million of debt in the second half of 2011, ending the year with gross leverage of 2.9x, within our targeted leverage range of 2.5x to 3.0x.”

Quinlan continued, “While I am pleased with the customer wins we have added to the platform, we begin this year managing our cost structure even more aggressively. Our expectation is that the customer wins, coupled with our aggressive cost management, will result in non-GAAP earnings per diluted share in the range of $1.84 to $1.92 for 2012. Looking forward, we expect to continue to generate strong cash flow, allowing us to invest in the platform, pay our $1.04 per share annual dividend and remain within our targeted leverage range of 2.5x to 3.0x.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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