RRD - Why R.R. Donnelley & Sons Stock Rocketed 39% Early Today
Shares of printing company R.R. Donnelley & Sons (NYSE: RRD) rose dramatically in early trading on Wednesday, gaining as much as 39% at one point. At roughly 11 a.m. EDT today, the stock was still up around 37%. The company reported earnings this morning, but in reality nobody really paid all that much attention. It was the other announcement, about the company being bought out, that got investors excited.
To get earnings out of the way, Donnelley's third-quarter sales were higher by 6% year over year. Its operating margin improved by 20 basis points. Earnings came in at $0.57 per share, up nearly 80% from the $0.32 in the third quarter of 2020. And it paid down some debt, strengthening its balance sheet . All good things, but pretty meaningless when you put it up against the news that Donnelley is being bought out.
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Why R.R. Donnelley & Sons Stock Rocketed 39% Early Today