We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dun & Bradstreet (DNB) Q3 Earnings Beat, Revenues Falter
Read MoreHide Full Article
Dun & Bradstreet Corp. (DNB - Free Report) reported third-quarter 2016 results wherein adjusted earnings of $1.79 per share easily beat the Zacks Consensus Estimate of $1.75 but revenues of $412.8 million missed the consensus mark of $423.8 million. On a year-over-year basis, earnings fell 2.7% but revenues grew 1.6%. The company reiterated its guidance for the current year.
On an adjusted basis and after including forex effect, total revenue came in at $412.8 million, almost flat year over year. Revenues from the company’s Americas segment were up 1% year over year to $338.8 million while that from Non-Americas declined 5% to $74 million.
On an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas were up 2% year over year to $203.6 million. Sales & Marketing Solutions revenues from the region fell 1% from the year-ago quarter to $135.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 1% year over year to $60.3 million. Sales & Marketing Solutions Non-Americas fell 18% from the year-ago quarter to $13.7 million.
Margins
On an adjusted basis, total operating costs were up 1% to $305.5 million. Total operating income was $107.3 million, up 1% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $327.3 million in cash and cash equivalents and long-term debt of $1.6 billion. The company’s net debt position as of Sep 30, 2016 was $1.3 billion.
For the first nine months of the year, cash flow from operating activities was $280 million while free cash flow was $232.1 million, down 3% year over year.
For 2016, the company continues to expect adjusted revenues to grow in a band of 4% to 6%. Adjusted operating income is now expected to grow in the range of 1% to 5%. Adjusted EPS is expected to be down 2% to up 3%. Free cash flow (excluding legacy tax matters and probable regulatory fines related to China operations, if any) is expected to be around $255 million to $285 million.
Our Take
We believe that Dun & Bradstreet’s high-margin business model, strategic investments, partnerships and accretive cloud-based acquisitions will drive growth. The company earlier divested its Latin American and Benelux region operations to its Worldwide Network partners. The sale of operations will be accretive to earnings and operating income in 2016 but adversely impact current year revenues by $6 million.
Also, the company will be able to provide a wide range of products given its partnerships with the likes of Salesforce.com (CRM - Free Report) , and Oracle Corp., which in turn will drive its top line.
Though D&B’s Americas business remains strong, the international business continues to be a drag on financials. Weak DNBi business and high debt are other areas of concerns. Plus, increasing competition from companies such as FactSet Research Systems Inc. (FDS - Free Report) and Nielsen N.V. will continue to hurt revenues and profitability in the near term. Moreover, a high debt level remains a concern.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Dun & Bradstreet (DNB) Q3 Earnings Beat, Revenues Falter
Dun & Bradstreet Corp. (DNB - Free Report) reported third-quarter 2016 results wherein adjusted earnings of $1.79 per share easily beat the Zacks Consensus Estimate of $1.75 but revenues of $412.8 million missed the consensus mark of $423.8 million. On a year-over-year basis, earnings fell 2.7% but revenues grew 1.6%. The company reiterated its guidance for the current year.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $412.8 million, almost flat year over year. Revenues from the company’s Americas segment were up 1% year over year to $338.8 million while that from Non-Americas declined 5% to $74 million.
On an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas were up 2% year over year to $203.6 million. Sales & Marketing Solutions revenues from the region fell 1% from the year-ago quarter to $135.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 1% year over year to $60.3 million. Sales & Marketing Solutions Non-Americas fell 18% from the year-ago quarter to $13.7 million.
Margins
On an adjusted basis, total operating costs were up 1% to $305.5 million. Total operating income was $107.3 million, up 1% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $327.3 million in cash and cash equivalents and long-term debt of $1.6 billion. The company’s net debt position as of Sep 30, 2016 was $1.3 billion.
For the first nine months of the year, cash flow from operating activities was $280 million while free cash flow was $232.1 million, down 3% year over year.
DUN &BRADST-NEW Price, Consensus and EPS Surprise
DUN &BRADST-NEW Price, Consensus and EPS Surprise | DUN &BRADST-NEW Quote
Guidance
For 2016, the company continues to expect adjusted revenues to grow in a band of 4% to 6%. Adjusted operating income is now expected to grow in the range of 1% to 5%. Adjusted EPS is expected to be down 2% to up 3%. Free cash flow (excluding legacy tax matters and probable regulatory fines related to China operations, if any) is expected to be around $255 million to $285 million.
Our Take
We believe that Dun & Bradstreet’s high-margin business model, strategic investments, partnerships and accretive cloud-based acquisitions will drive growth. The company earlier divested its Latin American and Benelux region operations to its Worldwide Network partners. The sale of operations will be accretive to earnings and operating income in 2016 but adversely impact current year revenues by $6 million.
Also, the company will be able to provide a wide range of products given its partnerships with the likes of Salesforce.com (CRM - Free Report) , and Oracle Corp., which in turn will drive its top line.
Though D&B’s Americas business remains strong, the international business continues to be a drag on financials. Weak DNBi business and high debt are other areas of concerns. Plus, increasing competition from companies such as FactSet Research Systems Inc. (FDS - Free Report) and Nielsen N.V. will continue to hurt revenues and profitability in the near term. Moreover, a high debt level remains a concern.
Currently, Dun & Bradstreet has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>