There’s been a notable change in appetite for Donnelley Financial Solutions, Inc. (NYSE:DFIN) shares in the week since its third-quarter report, with the stock down 12% to US$56.46. It looks like a pretty bad result, all things considered. Although revenues of US$180m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 53% to hit US$0.29 per share. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Donnelley Financial Solutions
Taking into account the latest results, the current consensus from Donnelley Financial Solutions’ four analysts is for revenues of US$834.5m in 2025. This would reflect a modest 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.4% to US$3.60. In the lead-up to this report, the analysts had been modelling revenues of US$847.7m and earnings per share (EPS) of US$3.66 in 2025. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$77.50, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Donnelley Financial Solutions analyst has a price target of US$80.00 per share, while the most pessimistic values it at US$75.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Donnelley Financial Solutions’ past performance and to peers in the same industry. One thing stands out from these estimates, which is that Donnelley Financial Solutions is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.6% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.9% per year. Although Donnelley Financial Solutions’ revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
