Overview
Donnelley Financial Q3 adjusted EPS beats analyst expectations
Company reports Q3 net loss of $40.9 mln due to pension plan settlement
Software solutions net sales rise 10.3%, now 51.7% of total sales
Outlook
Company sees Q4 net sales between $150 mln and $160 mln
Company expects Q4 adjusted EBITDA margin of 22% to 24%
Company anticipates Q4 capital markets transactional net sales of $30 mln to $40 mln
Result Drivers
SOFTWARE SALES GROWTH - Driven by 16% growth in recurring compliance products ActiveDisclosure and Arc Suite
VENUE PRODUCT LAUNCH - New version of Venue launched, receiving positive market feedback
MARGIN IMPROVEMENT - Higher Adjusted EBITDA and margin due to favorable sales mix and cost control
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $0.86 | $0.57 (3 Analysts) |
Q3 EPS | -$1.49 | ||
Q3 Adjusted Net Income | $23.70 mln | ||
Q3 Net Income | -$40.90 mln | ||
Q3 Adjusted EBITDA | $49.50 mln | ||
Q3 Adjusted EBITDA Margin | 28.20% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy"
Wall Street's median 12-month price target for Donnelley Financial Solutions Inc is $70.00, about 26.1% above its October 28 closing price of $51.70
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago
Press Release: ID:nPn7kQ3Mpa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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