Donnelley Financial Solutions (DFIN) Misses Q1 EPS by 1c, Revenues Beat; Affirms FY19 Revenue Mid-Point Guidance Above Consensus

Donnelley Financial Solutions (NYSE: DFIN) reported Q1 EPS of $0.06, $0.01 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $229.6 million versus the consensus estimate of $224.9 million.

Highlights:

• First-quarter net sales of $229.6 million, in line with guidance
• U.S. Investment Markets net sales increased by 4.0% from the first quarter of 2018 as a result of a special proxy project, as well as growth in annual report and prospectus solutions
• SaaS net sales increased by 6.5% from the first quarter of 2018, primarily driven by ActiveDisclosure; SaaS net sales represented 18.5% of first-quarter net sales
• Company reaffirms full-year 2019 guidance

“We are pleased with the strong demand we saw in U.S. Investment Markets for our market-leading regulatory and compliance solutions,” said Daniel N. Leib, DFIN’s president and chief executive officer. “As we anticipated, capital markets’ transactional activity was negatively impacted by the government shutdown early in the quarter, yet activity levels strengthened each successive month and returned to more normalized levels in March.”

“We exit the first quarter in line with our expectations, and enter our seasonally strongest period with a robust transactional pipeline, keeping us on track to achieve our full-year guidance while we continue to execute on our digital-focused strategy,” Leib concluded.

GUIDANCE:

Donnelley Financial Solutions sees FY2019 revenue of $910-940 million, versus the consensus of $924.22 million.

For earnings history and earnings-related data on Donnelley Financial Solutions (DFIN) click here.

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