R.R. Donnelley & Sons Q1 Results Beat Estimations, Reiterates Full Year Outlook

R.R. Donnelley & Sons Company RRD revealed net earnings of $39.8 million or $0.19 a share for the three-month period January to March. In comparison, the company earned $22.3 million or $0.11 a share in the year-ago quarter. While profit represented 78.5 percent year-over-year growth, EPS accounted for 72.7 percent uptick.

On an adjusted basis, R.R. Donnelley would have earned $47.2 million or $0.22 per share, down from $51.9 million or $0.26 per share in the previous year quarter. However, earnings were $0.04 a share more than the analysts' expectations.

The company's net sales fell 3.5 percent to $2.65 billion from $2.75 billion in the year-ago quarter. Still, it was above the analysts' estimations of $2.62 billion.

R.R. Donnelley's President and CEO Thomas Quinlan commented, "We are pleased with our first-quarter results. While the demand environment remained challenging, our disciplined cost management allowed us to hold EBITDA margin flat compared to last year's first quarter. In addition, we saw a marked improvement in the year-over-year revenue trend as the quarter progressed."

Quinlan added, "Our outlook for the full year is in line with our previous guidance, which we reiterate today. We are focused on achieving these expectations, and at the same time, we are making significant progress on the spin-offs of LSC Communications and Donnelley Financial Solutions, both of which remain on track to be completed in October."

Moving ahead, the company reiterated its net sales forecast of $11.3 - $11.5 billion for the year 2016. The mid-point is above the Street predictions of $11.34 billion. The company also confirmed its free cash flow of $400 - $500 million and adjusted EBITDA margin of 10.4 – 10.6%.

Shares of the company gained 1.15 percent on Monday.