RR Donnelly Shares Trading 14% Lower After Operating Margin Cut

RR Donnelly & Sons

shares are trading 14% lower today after the company cut its forecast for adjusted operating margin in 2011. The company announced expected full-year 2011 free cash flow (cash flow from operations less capital expenditures) to be in the range of $650 million to $700 million, an increase from the previous guidance that called for free cash flow of approximately $600 million. Revenue is expected to be $10.6 billion, non-GAAP operating margin is expected to be 6.6% to 6.7%, non-GAAP effective tax rate is expected to be 23% to 24% and fully-diluted weighted average share count is expected to be 196 million to 197 million. All other previous guidance issued in November is generally consistent with expected results. Previous guidance is posted under the investors / presentations section of our website at www.rrd.com.