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Donnelley (DFIN) to Report Q4 Earnings: What's in the Cards?
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Donnelley Financial Solutions (DFIN - Free Report) is scheduled to announce fourth-quarter 2020 results on Feb 25.
The Zacks Consensus Estimate for quarterly revenues is pegged at $185 million, calling for a decline of 2.79% year on year. The consensus mark for earnings is pegged at 23 cents per share, suggesting 4.55% year-over-year growth.
Notably, the company’s earnings surpassed estimates in the preceding four quarters, the average surprise being 119.54%.
Let’s see how things have shaped up prior to this announcement.
Donnelley Financial Solutions Inc. Price and EPS Surprise
Donnelley Financial’s fourth-quarter performance is likely to have benefited from additional cost reductions. Its aggressive approach toward managing the cost structure is anticipated to have cushioned the company’s bottom-line performance to some extent during the period in discussion. The company also expects interest expenses to be significantly lower sequentially.
However, the divestiture of the DLS Worldwide business, which is expected to have closed in the fourth quarter, is likely to have negatively impacted the operating cash flow during the quarter.
Moreover, the adverse impact of the pandemic is expected to have led to a year-over-year decline of 12-18% in revenues.
Previous disposition of the company’s GDS business and closure of its business operations in Chile are expected to have led to another $25-million headwind to the top line.
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 has a Zacks Rank of 3 and 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:
Autodesk, Inc. (ADSK - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank of 2, at present.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently, a Zacks Rank of 3.
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Donnelley (DFIN) to Report Q4 Earnings: What's in the Cards?
Donnelley Financial Solutions (DFIN - Free Report) is scheduled to announce fourth-quarter 2020 results on Feb 25.
The Zacks Consensus Estimate for quarterly revenues is pegged at $185 million, calling for a decline of 2.79% year on year. The consensus mark for earnings is pegged at 23 cents per share, suggesting 4.55% year-over-year growth.
Notably, the company’s earnings surpassed estimates in the preceding four quarters, the average surprise being 119.54%.
Let’s see how things have shaped up prior to this announcement.
Donnelley Financial Solutions Inc. Price and EPS Surprise
Donnelley Financial Solutions Inc. price-eps-surprise | Donnelley Financial Solutions Inc. Quote
Factors at Play
Donnelley Financial’s fourth-quarter performance is likely to have benefited from additional cost reductions. Its aggressive approach toward managing the cost structure is anticipated to have cushioned the company’s bottom-line performance to some extent during the period in discussion. The company also expects interest expenses to be significantly lower sequentially.
However, the divestiture of the DLS Worldwide business, which is expected to have closed in the fourth quarter, is likely to have negatively impacted the operating cash flow during the quarter.
Moreover, the adverse impact of the pandemic is expected to have led to a year-over-year decline of 12-18% in revenues.
Previous disposition of the company’s GDS business and closure of its business operations in Chile are expected to have led to another $25-million headwind to the top line.
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 has a Zacks Rank of 3 and 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:
Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.21% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autodesk, Inc. (ADSK - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank of 2, at present.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently, a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>