R.R. Donnelley lowered FY2019 guidance

R.R. Donnelley & Sons (NYSE:RRD) reports organic net sales decreased 0.4% in Q3.

Segment revenue: Business Services: $1.28B (-6.4%); Marketing Solutions: $343.4M (+19.9%).

Gross margin rate down 10 bps to 19.2%.

Adjusted SG&A expense rate improved 70 bps to 11.7%.

Adjusted EBITDA margin up 60 bps to 7.7%.

Adjusted operating margin rate grew 70 bps to 4.8%.

On October 25, 2019, the Company sold its GDS business for $42.3M and net proceeds are expected to be repatriated to the US and used to reduce debt outstanding.

FY2019 Guidance

: Sales: $6.25B to $6.35B; Adjusted income from operations: $245M to $260M; D&A: ~$170M; Interest expense, net: ~$152M; Adjusted effective tax rate: ~57%; Adjusted diluted EPS: $0.67 to $0.76; Capex: ~$140M; Cash flow from operations: $150M to $165M; Proceeds from facility sales: ~$32.8M.

Previously: R.R. Donnelley & Sons EPS beats by $0.10, beats on revenue (Oct. 29)

See all stocks on the move »