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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 report fourth-quarter 2021 results on Feb 22.

The Zacks Consensus Estimate for quarterly revenues is pegged at $226 million, indicating an improvement of 7.47% year on year. The consensus mark for earnings remained unchanged at $1.26 per share over the last 30 days, suggesting a whopping 250% year-over-year growth.

The company has a trailing four-quarter earnings surprise of 83.26%, on average.

Factors to Note

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 contributed to the company’s bottom-line performance in the quarter to be reported.

The company’s fourth-quarter top line is likely to reflect benefits from continued growth in the software products as well as the sustained strength in the capital markets transactional environment. However, planned reduction in print and distribution sales might have weighed on revenue growth.

Donnelley Financial is likely to have gained from the strategic transformation of its business and focus on software development. The top line is likely to reflect client’s acceptance of new products like ActiveDisclosure platform, which is a cloud based platform built for SEC reporting.

However, the company has been reeling from the effects of SEC Rule 30e-3 and Rule 498A regarding elimination of print annual and semi-annual reports and elimination or reduction of print summary prospectus. These regulatory impacts might have weighed on its net earnings and adjusted EBITDA.

What Our Model Unveils

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

Donnelley has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Zscaler (ZS - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2. The company is scheduled to release second-quarter 2022 results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zscaler’s shares have gained 19.6% in the past year compared with the Zacks Internet – Services industry’s growth of 4%. The Zacks Computer and Technology Sector witnessed a fall of 0.9%.

Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2022 results on Feb 28.

Ambarella’s shares have returned 11% in the past year compared with the Zacks Electronics-Semiconductors industry’s rally of 9.1%. The Zacks Computer and Technology Sector witnessed a fall of 0.9%.

Docebo (DCBO - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2021 results on Mar 10.

Docebo’s shares have fallen 0.4% in the past year compared with the Zacks Internet - Software industry’s decline of 50.69%.

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