RR Donnelley: The Future of Printable Electronics

R.R. Donnelley & Sons Company (NASDAQ:RRD) is a Fortune 500 company headquartered in Chicago, IL that provides print and print-related services. In other words, the company helps organizations communicate more effectively by working to create, manage, produce, and distribute content on behalf of its customers. The company assists customers in developing and implementing communication strategies through various platforms that engage audiences, reduces costs, drive revenues and increase compliance.

Over the past 3 months, the stock has returned nearly 13 percent as shown below, while also returning capital back to its shareholders in the form of a healthy $1.04 dividend, producing a yield of 6.50 percent.

RRD Chart

Additionally, the company posted strong financials for the second quarter for 2014. Net sales grew 12.9 percent from the second quarter of 2013, largely due to the acquisitions of Consolidated Graphics and the North American operations of Esselte. However, net earnings attributable to common shareholders came in at $64.7 million, or $0.32 per diluted share, down from $65.4 million, or $0.36 per diluted share, from the same quarter of the prior year. This was mainly a result of the diluted share count increasing by 18.2 million shares between the second quarter of 2014 and 2013, primarily related to the new shares issued in connection with the acquisition of Consolidated Graphics and the North American operations of Esselte. The share dilution resulted in a drop in the stock’s price at the beginning of the year, but the F500 Company has since … continue reading