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DFIN — Donnelley Financial Solutions News Story

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Donnelley Financial Q1 revenue rises 2.2%, slightly beats estimates

Overview

US compliance software provider's Q1 revenue rose 2.2%, slightly beating analyst expectations

Adjusted EPS for Q1 beat consensus, driven by higher software solutions sales and cost efficiencies

Company repurchased shares and authorized new $150 mln buyback program

Outlook

Company sees Q2 net sales of $215 mln to $225 mln

DFIN expects Q2 adjusted EBITDA margin of 34% to 36%

Result Drivers

SOFTWARE SOLUTIONS GROWTH - Higher software solutions net sales, led by ActiveDisclosure, drove overall revenue growth

COST STRUCTURE AND EFFICIENCIES - Adjusted EBITDA margin expanded due to evolving sales mix, permanent cost structure changes, and operating efficiencies

Company press release: ID:nPn6krJDya

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 RevenueSlight Beat*$205.50 mln$204.79 mln (3 Analysts)
Q1 Adjusted EPSBeat$1.45$1.35 (3 Analysts)
Q1 EPS$1.27
Q1 Adjusted Net Income$38.20 mln
Q1 Net Income$33.50 mln
Q1 Adjusted EBITDA$70.60 mln
Q1 Adjusted EBITDA Margin34.40%
*Applies to a deviation of less than 1%; not applicable for per-share numbers. 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" Wall Street's median 12-month price target for Donnelley Financial Solutions Inc is $66.00, about 30.4% above its May 4 closing price of $50.63 The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (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.)

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