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Dun & Bradstreet's (DNB) Q4 Earnings Miss, Revenues Beat
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The Dun & Bradstreet Corporation (DNB - Free Report) reported fourth-quarter 2016 results wherein adjusted earnings of $2.99 per share fell short of the Zacks Consensus Estimate of $3.02 but revenues of $517.1 million beat the consensus mark of $514.5 million.
On a year-over-year basis, the metrics registered growth of 4.2% and 3.6%, respectively.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $517.1 million, up 2% year over year. Adjusted deferred revenues were up 2% after including forex effect.
Organic revenues came in at $512.4 million, up 5% before the effect of forex.
Region wise, revenues from the company’s Americas segment were up 5% year over year to $441.2 million whereas that from Non-Americas declined 8% to $75.9 million.
Segment wise, on an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas were up 1% year over year to $210 million. Sales & Marketing Solutions revenues from the region grew 8% from the year-ago quarter to $231.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $61.4 million. Sales & Marketing Solutions Non-Americas fell 21% from the year-ago quarter to $14.5 million.
Margins
On an adjusted basis, total operating costs were down 2% to $336.4 million. Adjusted total operating income was $180.7 million, up 4% year over year.
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise
Dun & Bradstreet ended the quarter with $352.6 million in cash and cash equivalents and long-term debt of $1.595 billion. The company’s net debt position as of Dec 31, 2016 was $1.264 billion.
For the year, cash flow from operating activities was $322.7 million while free cash flow was $262.5 million, down 4% year over year.
The company also announced a dividend hike of 4%. The company’s new dividend of 50.25 cents per share will be paid on Mar 10, 2017 to shareholders as of Feb 23.
Our Take
Dun & Bradstreet is expected to benefit from its high-margin business model and strong product portfolio. Its partnerships with big players have also helped it bring many more customers into the fold. Plus, the company is also well-positioned to gain from its strategic acquisitions and alliances. The company’s focus on expanding analytics capabilities is another positive. Shares of Dun & Bradstreet have outperformed the Zacks Business Information Service industry in the last one year. The company’s shares have increased 37.98% compared with the industry’s gain of 20.29% during the period.
Though Dun & Bradstreet’s Americas business remains strong, the international business continues to be a drag on financials. A weak DNBi business and a high debt are the other areas of concerns. Plus, increasing competition from companies such as S&P Global, Inc. (SPGI - Free Report) , FactSet Research Systems Inc. (FDS - Free Report) and Nielsen N.V. and a high debt level remain major concerns.
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Dun & Bradstreet's (DNB) Q4 Earnings Miss, Revenues Beat
The Dun & Bradstreet Corporation (DNB - Free Report) reported fourth-quarter 2016 results wherein adjusted earnings of $2.99 per share fell short of the Zacks Consensus Estimate of $3.02 but revenues of $517.1 million beat the consensus mark of $514.5 million.
On a year-over-year basis, the metrics registered growth of 4.2% and 3.6%, respectively.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $517.1 million, up 2% year over year. Adjusted deferred revenues were up 2% after including forex effect.
Organic revenues came in at $512.4 million, up 5% before the effect of forex.
Region wise, revenues from the company’s Americas segment were up 5% year over year to $441.2 million whereas that from Non-Americas declined 8% to $75.9 million.
Segment wise, on an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas were up 1% year over year to $210 million. Sales & Marketing Solutions revenues from the region grew 8% from the year-ago quarter to $231.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $61.4 million. Sales & Marketing Solutions Non-Americas fell 21% from the year-ago quarter to $14.5 million.
Margins
On an adjusted basis, total operating costs were down 2% to $336.4 million. Adjusted total operating income was $180.7 million, up 4% year over year.
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise | Dun & Bradstreet Corporation (The) Quote
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $352.6 million in cash and cash equivalents and long-term debt of $1.595 billion. The company’s net debt position as of Dec 31, 2016 was $1.264 billion.
For the year, cash flow from operating activities was $322.7 million while free cash flow was $262.5 million, down 4% year over year.
The company also announced a dividend hike of 4%. The company’s new dividend of 50.25 cents per share will be paid on Mar 10, 2017 to shareholders as of Feb 23.
Our Take
Dun & Bradstreet is expected to benefit from its high-margin business model and strong product portfolio. Its partnerships with big players have also helped it bring many more customers into the fold. Plus, the company is also well-positioned to gain from its strategic acquisitions and alliances. The company’s focus on expanding analytics capabilities is another positive. Shares of Dun & Bradstreet have outperformed the Zacks Business Information Service industry in the last one year. The company’s shares have increased 37.98% compared with the industry’s gain of 20.29% during the period.
Though Dun & Bradstreet’s Americas business remains strong, the international business continues to be a drag on financials. A weak DNBi business and a high debt are the other areas of concerns. Plus, increasing competition from companies such as S&P Global, Inc. (SPGI - Free Report) , FactSet Research Systems Inc. (FDS - Free Report) and Nielsen N.V. and a high debt level remain major concerns.
Currently, Dun & Bradstreet has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>