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Dun & Bradstreet (DNB) Q3 Earnings & Revenues Lag Estimates

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The Dun & Bradstreet Corporation (DNB - Free Report) reported disappointing third-quarter 2018 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

Adjusted EPS came in at $1.85, which lagged the consensus mark by 15 cents. However, the figure improved 3.4% on a year-over-year basis. Total revenues of $407.3 million missed the consensus mark by $26.3 million and declined 4.9% year over year, both before and after the effect of foreign exchange.

Adjusted revenues totaled $416.7 million, which declined 3.1% year over year, both before and after the effect of foreign exchange. Also, organic revenues decreased 3% on a year-over-year basis.

As of Sep 30, 2018, deferred revenues were $528.9 million, per ASC 606 standards. Deferred revenues, as of Sep 30, 2018, were $615.3 million, up 1% year over year.

On Aug 8, 2018, Dun & Bradstreet announced that it has agreed to be acquired by an affiliate of CC Capital. The transaction, valued at $6.9 billion, is expected to be completed by the end of this year.

Notably, shares of Dun & Bradstreet have gained 25.1% in a year’s time, outperforming the 13.9% growth of the industry.

Segmental Performance

Revenues at the Americas segment amounted to $336.3 million (83% of total revenues), down 4% year over year, both before and after the effect of foreign exchange. Adjusted revenues of $342.8 million declined 3% year over year.

In terms of product lines, adjusted Risk Management Solutions revenues from Americas totaled $202.9 million, flat year over year, both before and after the effect of foreign exchange. Adjusted Sales and Marketing Solutions revenues from the region came in at $139.9 million, down 7% year over year.

Revenues at the Non-Americas segment summed $71 million (17% of total revenues), which declined a respective 5% and 7% year over year before and after the effect of foreign exchange. Adjusted revenues of $73.9 million decreased 2% and 3% year over year before and after the effect of foreign exchange, respectively.

In terms of product lines, adjusted Risk Management Solutions revenues from Non-Americas were $61.9 million, up 4% year over year before the foreign exchange impact and 3% after the same. Adjusted Sales and Marketing Solutions revenues from the region amounted to $12 million, which decreased a respective 24% and 25% year over year before and after the foreign exchange impact.

Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise

 

Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise | Dun & Bradstreet Corporation (The) Quote

Operating Results

Adjusted operating income for the third quarter was $105.8 million, down 7.2% from the prior-year quarter. Adjusted operating margin of 25.4% declined 110 basis points (bps) from the year-ago quarter.

Balance Sheet and Cash Flow

Dun & Bradstreet exited third-quarter 2018 with cash and cash equivalents balance of $228.2 million compared with $199.5 million in the last reported quarter. Long-term debt at the end of the quarter was $1.31 billion, flat sequentially.

The company generated $72.7 million of cash from operating activities and spent $1.4 million on Capex. Free cash flow was $58.2 million.

Zacks Rank & Upcoming Releases

Dun & Bradstreet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Business Services sector are keenly awaiting upcoming quarterly releases from Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) , and Broadridge Financial Solutions, Inc. (BR - Free Report) . While Avis Budget Group will release result on Nov 5, Genpact and Broadridge will announce the same on Nov 6.

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