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

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The Dun & Bradstreet Corporation (DNB - Free Report) is scheduled to report second-quarter 2018 results on Aug 8, after market close.

Weak Sales and Marketing revenues in the Americas segment are likely to weigh on the top line. The bottom line is expected to be positively impacted by the 2017 tax reform.

So far this year, shares of Dun & Bradstreet have gained 5% compared with the 12.1% rise of the industry it belongs to.

 

Revenue Expectations Disappointing

The Zacks Consensus Estimate for revenues stands at $402.78 million, indicating year-over-year decline of 0.7%. Decline in Sales and Marketing revenues in the Americas segment is likely to hurt the top line. Improvement in the Non Americas segment is likely to somewhat offset the downfall.

In first-quarter 2018, total revenues increased 9.6% year over year to $418.2 million.

Earnings to Improve Year Over Year

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.50 per share, indicating year-over-year growth of 7.2%. Lower tax rates (as a result of Tax Cuts and Jobs Act) and improved operating performance are likely to boost the company’s bottom line.

In first-quarter 2018, adjusted earnings increased 30.5% year over year to $1.24 per share.

Our Model Doesn’t Suggest a Beat

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Dun & Bradstreet has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Key Picks

Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in second-quarter 2018:

Switch has an Earnings ESP of +9.38% and a Zacks Rank #3. The company is scheduled quarterly numbers on Aug 13. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GreenSky has an Earnings ESP of +1.27% and a Zacks Rank #3. The company is slated to report quarterly results on Aug 7.

Worldpay has an Earnings ESP of +0.49% and a Zacks Rank #3. The company is scheduled to report quarterly numbers on Aug 9.

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