Why Shares of R.R. Donnelley & Sons Plunged Today

Shares of R.R. Donnelley & Sons (NYSE: RRD) tumbled on Wednesday after the company reported a mixed second-quarter earnings report. While revenue came in above analyst expectations, a weak bottom line sent the stock down 17% by 12:10 PM.

RRD reported second-quarter revenue of $1.65 billion, up 0.8% year over year and $40 million higher than the average analyst estimate. Variable print sales dropped 0.9%, driven by volume declines in direct mail and commercial and digital print, as well as price erosion. Strategic-services revenue rose 1.5%, with volume increases in logistics and sourcing and higher fuel surcharges offsetting lower postage pass-through sales and logistics price declines.

Image source: RRD.

Source: Fool.com