DM Firms Continue to Report Positive Results

Share this content:
Good news continued to abound this week in another round of quarterly earnings releases by marketing services and mailing companies.


Harte-Hanks, San Antonio, reported first quarter earnings of 21 cents a share, beating Wall Street estimates posted by Earnings Whispers.com by a penny and improving on its 1998 performance by 16.7 percent. Revenues grew 5.9 percent to $188.1 million.


Direct marketing revenues were up 9.2 percent to $124.9 million and operating income up 22.8 percent to $17.3 million. All three groups in its direct marketing group -- response management, marketing services and database marketing operations -- saw steady growth, especially in the retail, hi-tech, insurance and pharmaceutical markets, said president/CEO Larry Franklin.


Big Flower Holdings, New York, reported EPS of 16 cents, also beating estimates by a penny and increasing its profit performance by 78 percent. Revenue grew 9.5 percent to $420.3 million. The results of the diversified advertising, printing and marketing services company were driven in part by the 11 acquisitions made in the last year.


Big Flower's direct marketing business, which includes direct mail production, database and response management, grew its revenues by 15.8 percent to $72.7 million.


R.R. Donnelley, Chicago, made it a trio beating estimates by 1 cent with EPS of 33 cents that marked a 10 percent improvement over a year ago. Revenues for the commercial printer were flat at $1.17 billion but net sales of materials rose 5 percent.


Advo, Windsor, CT, reported EPS grew 16.7 percent to 28 cents in its second quarter while revenues were flat at $253.5 million. For the six months ended March 31, EPS was up 21.7 percent to 73 cents and revenues up 1.3 percent to $522.1 million.


Total packages mailed in the quarter dropped 0.1 percent to 771.9 million as did pieces per package, down 3.5 percent to 8.24, but revenue per thousand pieces was up 1.3 percent to $36.54. The shared mail marketer saw revenue increases in its ANNE and Advo Targeting Zone businesses.


Valassis Communications, Livonia, MI, saw its EPS grow 35.9 percent to 87 cents on revenue growth of 8 percent to $222.2 million. Robert Recchia, CFO of the producer of free standings inserts, sampling programs and a new customer relationship marketing group, expects EPS to continue to grow at a 30 percent pace for the year.


Memberworks, Stamford, CT, reported EPS grew 160 percent to a record 13 cents a share while revenue jumped 92 percent to a record $56.4 million in its fiscal third quarter. For the nine months ended March 31, EPS rose 200 percent to 30 cents before an accounting charge and revenue increased 86 percent to $151 million. The membership direct marketer has grown its customer base to nearly 5 million members.
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above