This Once-Shamed Stock Is Blowing Away Google

by Alyssa Oursler | October 18, 2013 10:59 am

All eyes are on Google (GOOG[1]) earnings today, and hardly any eyes are on its financial printer R.R. Donnelley & Sons (RRD[2]) … which usually is par for the course, but sure wasn’t one day last year.

Google stock opened double-digits higher to all-time highs this morning … all thanks to a third-quarter earnings beat and soaring revenues. That’s the polar opposite of this time in 2012, when GOOG moved quickly in the opposite direction after the third-quarter Google earnings report.

It was a double-whammy day, as GOOG didn’t just miss expectations on the top and bottom lines, but also accidentally filed its 8-K early. The earnings form featured a line reading “PENDING LARRY QUOTE,”[3] along with other signs that it wasn’t finished.

The result: Google stock plummeted[4] 9% in one day — nearly the same amount it has jumped today — before trading was halted.

And “PENDING LARRY QUOTE” enjoyed five minutes of Internet fame[5].

Of course, Google didn’t just sit back and suffer the mishap alone. It pointed the finger at financial printer R.R. Donnelley & Sons when things went south.

Investors only shamed RRD down 3% on the day of the gaffe, but the headline hangover for the small-cap was much more noticeable. Already sliding R.R. Donnelley & Sons stock fell 16% from the day of Google earnings to 2012’s end, bringing its full-year losses to around 40%.

However, since then, it hasn’t just been Google stock enjoying a rebound … GOOG has just gotten all the headlines (and understandably so).

But RRD stock has posted a bigger and badder comeback[6]. Take a look:

rrdgoog

RRD shares have fallen off some since peaking in early August, but at 86%, their YTD returns are still blowing away[7] the 38% GOOG stock climb that has captured Wall Street’s attention this year and more this morning. And since last year’s debacle, R.R. Donnelley & Sons stock has soared 56% to beat the 44% return of Google through today.

So sure, Google is getting more publicity … but R.R. Donnelley & Sons still can call “scoreboard” for now.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.

Endnotes:

  1. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  2. RRD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RRD
  3. “PENDING LARRY QUOTE,”: https://investorplace.com/2012/10/google-stock-smashed-after-massive-earnings-blunder/
  4. Google stock plummeted: https://investorplace.com/2012/10/google-stock-smashed-after-massive-earnings-blunder/
  5. five minutes of Internet fame: https://investorplace.com/2012/10/the-top-5-pending-larry-tweets/
  6. bigger and badder comeback: https://investorplace.com/2013/06/rr-donnelley-risen-from-the-dead/
  7. still blowing away: https://investorplace.com/2013/08/5-soaring-dividend-stocks-yield-smlp-ntri-ga-rrd-bgcp/5/

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