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Donnelley (DFIN) to Report Q3 Earnings: What's in the Cards?

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Donnelley Financial Solutions (DFIN - Free Report) is scheduled to announce third-quarter 2020 results on Nov 5.

The Zacks Consensus Estimate for quarterly revenues is pegged at $185 million, calling for a decline of 5.6%, year on year. The consensus mark for earnings is pegged at 19 cents per share, suggesting 46.2% year-over-year growth.

Notably, the company’s earnings surpassed estimates in three of the preceding four quarters and missed in the other, the average beat being 52.1%.

Let’s see how things shaped up prior to this announcement.

Factors at Play

Donnelley Financial’s quarterly performance might have been hurt by sluggish compliance filing transactional activities due to COVID-19-related shutdowns and business disruptions.

Global IPO and M&A activities were slow during the third quarter, which is likely to have adversely impacted the company’s top-line performance. Notably, IPO and M&A account for roughly 40% and 30%, respectively, of the firm’s total transactional business.

Nonetheless, Donnelley Financial’s aggressive approach toward managing its cost structure is anticipated to have cushioned the company’s bottom-line performance to some extent during the period in discussion.

What Our Model Says

Our proven model does not predict an earnings beat for Donnelley Financial this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Donnelley Financial currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.00% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hologic, Inc. (HOLX - Free Report) has an Earnings ESP of +20.90% and holds a Zacks Rank of 2, currently.

Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.

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