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.
Will Dun & Bradstreet (DNB) Q1 Earnings Pull Off a Surprise?
Read MoreHide Full Article
The Dun & Bradstreet Corporation (DNB - Free Report) is set to release first-quarter 2017 earnings on May 1. In the last quarter, the company reported a negative earnings surprise of 0.99%. However, the company delivered positive earnings surprises in the last four quarters, with an average of 10.73%.
Let's see how things are shaping up for this announcement.
Factors at Play
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. Dun & Bradstreet’s focus on expanding analytics capabilities is another positive.
However, though the company’s Americas business remains strong, the international business continues to be a drag on financials. Stiff competition, 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. and a high debt level remain major concerns.
Dun & Bradstreet Corporation (The) Price and EPS Surprise
We believe that this uncertainty has dented share price movement in recent times. On a year-to-date basis Dun & Bradstreet shares have declined 9.8% against the Zacks Business - Information Services Industry’s gain of 12.3%.
While the company is expected to gain from an improved sales strategy, reinvigorated by a better business mix and a motivated sales force, we believe that uncertain macroeconomic environment will keep the top line under pressure.
Earnings Whispers
Our proven model does not conclusively show that Dun & Bradstreet is likely to beat earnings estimates 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. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Dun & Bradstreet is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at earnings of 89 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dun & Bradstreet’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock That Warrants a Look
Here is a company that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release:
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Will Dun & Bradstreet (DNB) Q1 Earnings Pull Off a Surprise?
The Dun & Bradstreet Corporation (DNB - Free Report) is set to release first-quarter 2017 earnings on May 1. In the last quarter, the company reported a negative earnings surprise of 0.99%. However, the company delivered positive earnings surprises in the last four quarters, with an average of 10.73%.
Let's see how things are shaping up for this announcement.
Factors at Play
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. Dun & Bradstreet’s focus on expanding analytics capabilities is another positive.
However, though the company’s Americas business remains strong, the international business continues to be a drag on financials. Stiff competition, 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. and a high debt level remain major concerns.
Dun & Bradstreet Corporation (The) Price and EPS Surprise
Dun & Bradstreet Corporation (The) Price and EPS Surprise | Dun & Bradstreet Corporation (The) Quote
We believe that this uncertainty has dented share price movement in recent times. On a year-to-date basis Dun & Bradstreet shares have declined 9.8% against the Zacks Business - Information Services Industry’s gain of 12.3%.
While the company is expected to gain from an improved sales strategy, reinvigorated by a better business mix and a motivated sales force, we believe that uncertain macroeconomic environment will keep the top line under pressure.
Earnings Whispers
Our proven model does not conclusively show that Dun & Bradstreet is likely to beat earnings estimates 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. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Dun & Bradstreet is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at earnings of 89 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dun & Bradstreet’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stock That Warrants a Look
Here is a company that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat in its upcoming release:
DragonWave with an Earnings ESP of +8.82% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>