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Dun & Bradstreet (DNB) Q1 Earnings & Revenues Top Estimates
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The Dun & Bradstreet Corporation (DNB - Free Report) reported first-quarter 2017 results wherein adjusted earnings of 95 cents per share and revenues of $381.5 million easily beat the Zacks Consensus Estimate of 89 cents and $378.4 million, respectively.
On a year-over-year basis, adjusted earnings fell 19.5% but revenues grew 1.7%.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $383.8 million, up 2% year over year. Adjusted deferred revenues were up 1% after including forex effect.
Organic revenues came in at $370.7 million, almost flat year over year.
Region wise, adjusted revenues from the company’s Americas segment were up 2% year over year to $316.3 million whereas that from Non-Americas declined 1% to $67.5 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 $182 million. Sales & Marketing Solutions revenues from the region grew 4% from the year-ago quarter to $134.3 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $54.4 million. Sales & Marketing Solutions Non-Americas grew 15% from the year-ago quarter to $13.1 million.
Margins
On an adjusted basis, total operating costs were down 4% to $316.6 million. Adjusted total operating income was $67.2 million, down 9% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $375.4 million in cash and cash equivalents and long-term debt of $1.685 billion. The company’s net debt position as of Mar 31, 2017 was $1.332 billion.
For the quarter, cash flow from operating activities was $123.8 million while free cash flow was $108.3 million, down 6% year over year.
Outlook
For 2017, management expects adjusted earnings per share to be down in the range of 4% to 9%. Revenues are expected to increase in the band of 3% to 5% (before forex effect).
Organic revenues are likely to increase in the band of 1% to 3% (before forex effect). Adjusted operating income is projected to be in the range of negative 2% to positive 2%.
Free cash flow will be in a bracket of $215 million to $245 million (excluding any regulatory fines impact from China operations)
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise
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.
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.
Shares of Dun & Bradstreet have underperformed the Zacks Business Information Service industry in the last one year. The company’s shares have decreased 0.61% compared with the industry’s gain of 2.58% during the period.
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Dun & Bradstreet (DNB) Q1 Earnings & Revenues Top Estimates
The Dun & Bradstreet Corporation (DNB - Free Report) reported first-quarter 2017 results wherein adjusted earnings of 95 cents per share and revenues of $381.5 million easily beat the Zacks Consensus Estimate of 89 cents and $378.4 million, respectively.
On a year-over-year basis, adjusted earnings fell 19.5% but revenues grew 1.7%.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $383.8 million, up 2% year over year. Adjusted deferred revenues were up 1% after including forex effect.
Organic revenues came in at $370.7 million, almost flat year over year.
Region wise, adjusted revenues from the company’s Americas segment were up 2% year over year to $316.3 million whereas that from Non-Americas declined 1% to $67.5 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 $182 million. Sales & Marketing Solutions revenues from the region grew 4% from the year-ago quarter to $134.3 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $54.4 million. Sales & Marketing Solutions Non-Americas grew 15% from the year-ago quarter to $13.1 million.
Margins
On an adjusted basis, total operating costs were down 4% to $316.6 million. Adjusted total operating income was $67.2 million, down 9% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $375.4 million in cash and cash equivalents and long-term debt of $1.685 billion. The company’s net debt position as of Mar 31, 2017 was $1.332 billion.
For the quarter, cash flow from operating activities was $123.8 million while free cash flow was $108.3 million, down 6% year over year.
Outlook
For 2017, management expects adjusted earnings per share to be down in the range of 4% to 9%. Revenues are expected to increase in the band of 3% to 5% (before forex effect).
Organic revenues are likely to increase in the band of 1% to 3% (before forex effect). Adjusted operating income is projected to be in the range of negative 2% to positive 2%.
Free cash flow will be in a bracket of $215 million to $245 million (excluding any regulatory fines impact from China operations)
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise | Dun & Bradstreet Corporation (The) Quote
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.
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.
Shares of Dun & Bradstreet have underperformed the Zacks Business Information Service industry in the last one year. The company’s shares have decreased 0.61% compared with the industry’s gain of 2.58% during the period.
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.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>