Overview

* Donnelley Financial Q3 adjusted EPS beats analyst expectations

* Company reports Q3 net loss of $40.9 mln due to pension plan settlement

* Software solutions net sales rise 10.3%, now 51.7% of total sales

Outlook

* Company sees Q4 net sales between $150 mln and $160 mln

* Company expects Q4 adjusted EBITDA margin of 22% to 24%

* Company anticipates Q4 capital markets transactional net sales of $30 mln to $40 mln

Result Drivers

* SOFTWARE SALES GROWTH - Driven by 16% growth in recurring compliance products ActiveDisclosure and Arc Suite

* VENUE PRODUCT LAUNCH - New version of Venue launched, receiving positive market feedback

* MARGIN IMPROVEMENT - Higher Adjusted EBITDA and margin due to favorable sales mix and cost control

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $0.86 $0.57 (3

Adjusted Analysts

EPS )

Q3 EPS -$1.49

Q3 $23.70

Adjusted mln

Net

Income

Q3 Net -$40.90

Income mln

Q3 $49.50

Adjusted mln

EBITDA

Q3 28.20%

Adjusted

EBITDA

Margin

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 ( DFIN ) is $70.00, about 26.1% above its October 28 closing price of $51.70

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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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.)