Market Overview

A Preview Of R.R.Donnelley & Sons's Earnings

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On Tuesday, October 27, R.R.Donnelley & Sons (NYSE: RRD) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on R.R.Donnelley & Sons management projections, analysts predict EPS of $0.13 on revenue of $1.26 billion. In the same quarter last year, R.R.Donnelley & Sons reported EPS of $0.31 on revenue of $1.62 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would have fallen 58.06%. Revenue would have fallen 22.17% from the same quarter last year. R.R.Donnelley & Sons's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.16 -0.04 0.46 0.21
EPS Actual -0.09 0.33 0.44 0.31
Revenue Estimate 1.15 B 1.38 B 1.61 B 1.61 B
Revenue Actual 1.16 B 1.41 B 1.63 B 1.62 B

Stock Performance

Over the past 52-week period, shares of R.R.Donnelley & Sons have declined 72.01%.

Do not be surprised to see the stock move on comments made during its conference call. R.R.Donnelley & Sons is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: Earnings