Is R.R. Donnelley’s Ink Fading?

R.R. Donnelley recently posted lower-than-expected second-quarter earnings, affected by one-time expenses, low volumes and high pricing pressure. The company’s shares saw a steep fall of 11 percent on the day the results were announced. Let’s take a look at what’s going on.

R.R. Donnelley has major customers such as AT&T and Verizon. However, demand trends are working against R.R. Donnelley, as customers no longer want similar printing services and are overtly cost-conscious. The company must be efficient enough to incorporate the changing trend or be ready to lose out. R.R. Donnelley plans to address these issues in the second half