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Dun & Bradstreet (DNB) Q2 Earnings: What's in the Cards?

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Dun & Bradstreet Corp. (DNB - Free Report) is set to report second-quarter 2016 results on Aug 1. Last quarter, it posted a 25.53% positive earnings surprise. In the trailing four quarters, the company has posted an average positive surprise of 8.33%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Dun & Bradstreet will likely benefit from its strong product portfolio. The company continues to launch new solutions, which leverage the benefits of its data and analytics capabilities. Over the past few months, the company has formed a number of strategic collaborations with the likes of The Latino Coalition, and NetSuite , which are expected to drive top-line growth in the second quarter.

Dun & Bradstreet continues to see strength in its Americas business, especially in organic revenues, but the international business might weigh on its financials.

This apart, weakness in its DNBi division, a leveraged balance sheet and mounting competition from companies such as IHS Inc. and FactSet Research Systems Inc. (FDS - Free Report) remain concerns.

DUN &BRADST-NEW Price and EPS Surprise

DUN &BRADST-NEW Price and EPS Surprise | DUN &BRADST-NEW Quote

Earnings Whispers

Our proven model does not conclusively show that Dun & Bradstreet is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Dun & Bradstreet has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.18.

Zacks Rank: Dun & Bradstreet has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stock to Consider

Here is a stock worth considering that, as per our model, has the right combination of elements to post an earnings beat this quarter:

General Dynamics Corp. (GD - Free Report) has an earnings ESP of +2.17% and a Zacks Rank #2.

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