Core Viewpoint - Donnelley Financial Solutions (DFIN) will hold a conference call on February 18, 2025, to discuss its fourth-quarter fiscal year 2024 financial results and provide a business update [1][3]. Group 1: Conference Call Details - The conference call is scheduled for February 18, 2025, at 9:00 a.m. Eastern time [1]. - A live webcast will be available on the Company's investor relations website, and participants are encouraged to register at least fifteen minutes prior to the event [2]. - A replay of the webcast will be accessible after the call, along with the earnings press release and related financial tables [2]. Group 2: Financial Reporting - DFIN's fourth-quarter financial report will be released before the market opens on February 18, 2025, via a filing with the SEC on Form 8-K [3]. Group 3: Company Overview - DFIN is a leading global provider of software and technology-enabled financial regulatory and compliance solutions, offering domain expertise, enterprise software, and data analytics [4]. - The company aims to deliver confidence through its solutions amidst fluctuating markets, evolving regulations, and advancing technology [4].

Core Viewpoint - The article highlights the effectiveness of value investing and identifies Donnelley Financial Solutions (DFIN) as a strong value stock based on its financial metrics and Zacks Rank [2][4][6]. Company Summary - Donnelley Financial Solutions (DFIN) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock is currently trading at a P/E ratio of 16.78, which is lower than the industry average of 18.78, suggesting it may be undervalued [4]. - DFIN's Forward P/E has fluctuated between 19.61 and 13.56 over the past 52 weeks, with a median of 16.35, indicating variability in market perception [4]. - The company has a P/CF ratio of 10.50, which is attractive compared to the industry average of 14.45, further supporting the notion of undervaluation [5]. - Over the past year, DFIN's P/CF has ranged from 9.84 to 13, with a median of 11.27, reflecting its solid cash outlook [5]. - Overall, DFIN is positioned as a potentially undervalued stock with a strong earnings outlook, making it an appealing choice for value investors [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Donnelley Financial Solutions (DFIN) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][6]. Company Analysis - Donnelley Financial Solutions (DFIN) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is a high-quality value stock [4]. - The stock is currently trading at a P/E ratio of 17.53, which is lower than the industry average of 18.21 [4]. - DFIN's Forward P/E has fluctuated between 19.61 and 13.56 over the past 12 months, with a median of 16.23 [4]. - The company has a P/CF ratio of 10.92, which is also below the industry average of 13.74, suggesting it may be undervalued [5]. - Over the past 52 weeks, DFIN's P/CF has ranged from a high of 13 to a low of 9.84, with a median of 11.32 [5]. - The combination of these metrics indicates that DFIN is likely undervalued and has a strong earnings outlook, making it an attractive investment opportunity [6].

Core Viewpoint - Donnelley Financial Solutions (DFIN) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are a significant factor influencing stock price movements, making the Zacks rating system valuable for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [5]. Business Improvement Indicators - The rising earnings estimates for Donnelley Financial suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, highlighting the importance of tracking these revisions for investment decisions [7]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Current Earnings Estimates for Donnelley Financial - Donnelley Financial is projected to earn $3.23 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -1.2%. However, the Zacks Consensus Estimate has increased by 7% over the past three months [9]. Conclusion on Zacks Rating - The upgrade to Zacks Rank 1 places Donnelley Financial in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Financial Data and Key Metrics Changes - The company reported net sales of $179.5 million, a decrease of $0.5 million or 0.3% on a reported basis, but an increase of 0.2% on an organic basis from Q3 2023 [25][6] - Adjusted EBITDA was $43.2 million, a decrease of $6.2 million from Q3 2023, with an adjusted EBITDA margin of 24.1%, down approximately 330 basis points year-over-year [29][6] - Free cash flow improved to $67.3 million, an increase of $6 million compared to Q3 2023, driven by better working capital performance [51] Business Line Data and Key Metrics Changes - Software solutions net sales grew by 13.6% on an organic basis, representing approximately 46% of total net sales, the highest level achieved to date [7][6] - Capital Markets Software Solutions segment net sales were $53.3 million, an increase of 16.8% on an organic basis, driven by strong performance in Venue, which saw approximately 27% sales growth [30][10] - Capital Markets Compliance and Communications Management segment net sales decreased by $6.6 million or 9.4% from Q3 2023, primarily due to lower capital markets transactional revenue [38][6] Market Data and Key Metrics Changes - The capital markets transactional environment remains soft, with an 8% reduction in transactional revenue [6] - IPO activity in Q3 was higher than last year, with an increased number of priced IPOs raising over $100 million, but the overall deal environment remains below historical averages [39][40] - The company maintained a historical high market share in completed IPO and M&A transactions despite the soft market conditions [40] Company Strategy and Development Direction - The company is focused on transforming its business mix towards higher-margin software solutions, evidenced by the growth in SaaS offerings [5][6] - Continued investment in tailored shareholder reports is expected to yield $11 million to $12 million in incremental recurring software revenue, with half recognized in 2024 [11][74] - The company plans to balance capital deployment between organic investments, share repurchases, and net-debt reduction [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to perform well in varying market conditions, with expectations for continued growth in software solutions [61] - The outlook for Q4 2024 anticipates consolidated net sales in the range of $165 million to $175 million, with adjusted EBITDA margins in the low 20% range [56] - Management noted that the capital markets transactional sales are expected to be down approximately $2 million from last year's fourth quarter [56] Other Important Information - The effective tax rate for the quarter was 43.5%, influenced by non-recognizable losses and unfavorable discrete tax adjustments [21][95] - The company repurchased approximately 208,000 shares for $13.3 million during Q3, with $108.7 million remaining on its stock repurchase authorization [54] Q&A Session Summary Question: Can you discuss EBITDA margins and Q4 guidance assumptions? - Management noted a $4 million benefit in Q3 2023 and a $2 million incremental expense in Q3 2024 affecting year-over-year comparisons, with Q4 guidance consistent with last year's margins [65][69] Question: Update on tailored shareholder reports and expected benefits? - The company expects $11 million to $12 million in recurring software revenue from tailored shareholder reports, with half realized in 2024 [74] Question: Impact of lower de-SPAC merger transactions on capital markets revenue? - Management acknowledged that while the overall market was up, larger deals in 2023 affected revenue comparisons, and the IPO market remains uncertain [76][80] Question: Insights on Venue's growth and competitive dynamics? - Management indicated that while growth was strong, tougher comps are expected, and they believe they are gaining market share despite competitive pressures [86][87] Question: Clarification on tax impact in Q3? - The tax rate was affected by non-recognizable losses and discrete tax adjustments, leading to a significant impact on the effective tax rate [95]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-37728 | --- | --- | |-------------------------------------------------------------------------------------------------|------------------------------------------| | | | | ...

Donnelley Financial Solutions (DFIN) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -38.46%. A quarter ago, it was expected that this financial communications and data services provider would post earnings of $1.59 per share when it actually produced earnings of $1.66, delivering a s ...

Financial Performance - Record third-quarter software solutions net sales of $82.2 million, an increase of 12.3% year-over-year, accounting for 45.8% of total net sales[1] - Total net sales of $179.5 million, a decrease of 0.3% from the third quarter of 2023, with a 0.2% increase on an organic basis[2] - Net earnings of $8.7 million, or $0.29 per diluted share, compared to $18.1 million, or $0.60 per diluted share, in the third quarter of 2023[3] - Adjusted EBITDA of $43.2 million, a decrease of $6.2 million year-over-year, with an Adjusted EBITDA margin of 24.1%, down approximately 330 basis points[4] - Total net sales for the three months ended September 30, 2024, were $179.5 million, a slight decrease of 0.3% compared to $180.0 million in the same period of 2023[18] - Tech-enabled services generated $75.2 million in sales for the three months ended September 30, 2024, down from $80.4 million in the same period of 2023, representing a decline of 4.0%[18] - Software solutions sales increased to $82.2 million for the three months ended September 30, 2024, up 12.3% from $73.2 million in the same period of 2023[18] - Net earnings for the three months ended September 30, 2024, were $8.7 million, a decrease of 52.0% from $18.1 million in the same period of 2023[18] - The company reported an operating margin of 10.1% for the three months ended September 30, 2024, down from 16.6% in the same period of 2023[19] - Non-GAAP net earnings were $14.3 million, or $0.48 per diluted share, compared to $21.7 million, or $0.72 per diluted share, in the third quarter of 2023[5] Cash Flow and Liquidity - Operating cash flow of $86.4 million and free cash flow of $67.3 million, improvements of $5.9 million and $6.0 million, respectively, from the third quarter of 2023[1] - Cash and cash equivalents increased to $33.6 million as of September 30, 2024, from $23.1 million as of December 31, 2023[17] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $114.7 million, significantly higher than $49.2 million in 2023[28] - Cash and cash equivalents at the end of the period on September 30, 2024, were $33.6 million, up from $11.7 million at the end of September 2023[28] - The company maintained $300.0 million in availability under its revolving credit facility, with no borrowings outstanding as of September 30, 2024[43] Shareholder Actions - The company repurchased 208,254 shares for approximately $13.3 million at an average price of $63.96 per share[1] Market Conditions - Capital markets deal activity remained soft, with transactional revenue down nearly 8% year-over-year[1] - The eBrevia disposition negatively impacted net organic sales change by 2.2% for the three months ended September 30, 2024[33] Adjustments and Non-GAAP Measures - Total non-GAAP adjustments for the three months ended September 30, 2023, amounted to $18.2 million, leading to an adjusted non-GAAP net income of $91.9 million, or $3.05 per diluted share[21] - Non-GAAP income from operations for Q3 2024 was $26.0 million, compared to $29.8 million in Q3 2023, reflecting a decrease of approximately 12.7%[25] - Adjusted EBITDA for Q3 2024 was $43.2 million, down from $49.4 million in Q3 2023, indicating a decline of about 12.5%[25] - Total non-GAAP adjustments for Q3 2024 amounted to $7.8 million, compared to $5.2 million in Q3 2023, reflecting an increase of approximately 50%[25] - Total non-GAAP adjustments for the nine months ended September 30, 2024, amounted to $12.9 million, compared to $24.7 million in 2023, indicating a reduction in adjustments[26] Asset and Liability Management - Total liabilities decreased to $399.1 million as of September 30, 2024, compared to $404.7 million as of December 31, 2023[17] - Total assets increased to $843.6 million as of September 30, 2024, from $806.9 million as of December 31, 2023[17] - The company reported a total debt of $124.5 million, a decrease from $165.9 million in the previous quarter[42] Growth and Strategic Initiatives - The company aims to invest in generating a more favorable recurring revenue mix and capture opportunities from regulatory changes[1] - Non-GAAP income from operations for the nine months ended September 30, 2024, was $140.2 million, compared to $124.9 million in 2023, reflecting a 12.6% increase[26] - Adjusted EBITDA for the nine months ended September 30, 2024, was $185.6 million, up from $166.1 million in 2023, indicating an increase of 11.4%[26] - The operating margin for the nine months ended September 30, 2024, improved to 20.3%, compared to 16.1% in the same period of 2023[26] - The company experienced a provision for expected losses on accounts receivable of $14.3 million for the nine months ended September 30, 2024, up from $10.8 million in 2023[28]

CHICAGO, Oct. 31, 2024 /PRNewswire/ -- Donnelley Financial Solutions, Inc. (NYSE: DFIN) (the "Company" or "DFIN") today reported financial results for the third quarter of 2024.Highlights for the third quarter of 2024: Record third-quarter software solutions net sales of $82.2 million, an increase of 12.3%, or 13.6% on an organic basis(a), from the third quarter of 2023; Software solutions net sales accounted for 45.8% of total net sales, up from 40.7% in the third quarter of 2023. Total net sales of $179.5 ...

Group 1 - DFIN has been awarded the 2024 NOVA Award for Industry Innovation in Product Development by Nicsa for its leadership and innovative marketing in response to the SEC's Tailored Shareholder Reports ruling [1][6] - The SEC's Tailored Shareholder Reports rule aims to simplify and standardize shareholder communications, particularly for retail investors [2] - DFIN developed its TSR solution through ArcReporting®, which automates complex reporting processes including data ingestion, validations, auditing, iXBRL tagging, filing, and producing digital print-ready financial reports [3][4] Group 2 - DFIN assists investment management clients in creating, iXBRL-tagging, and filing TSRs on Form N-CSR, ensuring compliance with the SEC's regulations [4] - The Vice President of Marketing for Global Investment Companies at DFIN expressed pride in receiving the innovation award and highlighted the company's commitment to helping clients navigate complex regulations [5] - DFIN is recognized as a leading global provider of software and technology-enabled financial regulatory and compliance solutions, offering expertise and analytics throughout the investment lifecycle [7]