Donnelley Financial Solutions Q3 profit beats estimates
Overview
US compliance software provider's Q3 net sales rose 5.5% yr/yr, driven by software growth
Adjusted EPS for Q3 beat analyst expectations
Company repurchased 146,672 shares for about $6.9 mln in Q3
Outlook
Company sees Q4 net sales between $175 mln and $180 mln
DFIN expects Q4 adjusted EBITDA margin of 26% to 27%
Company forecasts Q4 capital markets transactional net sales of $50 mln
Result Drivers
SOFTWARE SOLUTIONS - Co said net sales growth was primarily driven by increased software solutions sales, especially from ActiveDisclosure
CAPITAL MARKETS ACTIVITY - Co said higher capital markets transactional revenue contributed to net sales growth as overall market activity improved compared to Q3 last yr
OPERATING EFFICIENCIES - Co attributed Adjusted EBITDA margin expansion to higher net sales and ongoing operating efficiencies
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $1.07 | $0.84 (3 Analysts) |
Q3 EPS | $0.85 | ||
Q3 Adjusted Net Income | $26.80 mln | ||
Q3 Net Income | $21.30 mln | ||
Q3 Adjusted EBITDA | $54.40 mln | ||
Q3 Adjusted EBITDA Margin | 29.40% |
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 $62.00, about 16.7% above its October 28 closing price of $53.12
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago
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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.)