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Dun & Bradstreet (DNB) Misses Q2 Earnings, Unveils Sale Plan

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The Dun & Bradstreet Corporation (DNB - Free Report) reported mixed second-quarter 2018 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.

Adjusted EPS came in at $1.40, missing the consensus mark by 10 cents and remained flat year over year. Total revenues of $439.6 million outpaced the consensus estimate by $37 million and increased 8% year over year, both before and after the effect of foreign exchange.

Adjusted revenues totaled $394.4 million, which declined a respective 4% and 3% year over year before and after the effect of foreign exchange. The downside can be attributed to the timing shifts of several large contracts. Also, organic revenues decreased 4% on a year-over-year basis.

As of Jun 30, 2018, deferred revenues were $592.1 million per ASC 606 standards. Per ASC 605 standards, deferred revenues as of June 30, 2018 were $645.3 million, flat year over year.

Concurrent with the earnings release, 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.

So far this year, shares of Dun & Bradstreet have gained 20.1%, outperforming the 13.6% rally of the industry it belongs to.

Quarter Details

Revenues at the Americas segment amounted to $367.9 million (84% of total revenues), up 10% year over year, both before and after the effect of foreign exchange. Adjusted revenues of $320.9 million declined 5% year over year, both before and after the foreign exchange impact.

In terms of product lines, adjusted Risk Management Solutions revenues from Americas totaled $183.1 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 $137.8 million, down 10% year over year, both before and after the foreign exchange impact.

Dun & Bradstreet Corporation (The) Revenue (TTM)

Revenues at the Non-Americas segment summed $71.7 million (16% of total revenues), which declined a respective 4% and 1% year over year before and after the effect of foreign exchange. Adjusted revenues of $73.5 million decreased 1% year over year before the effect of foreign exchange but increased 3% after the impact of the same.

In terms of product lines, adjusted Risk Management Solutions revenues from Non-Americas were $61 million, up 3% year over year before the foreign exchange impact and 7% after the same. Adjusted Sales and Marketing Solutions revenues from the region amounted to $12.5 million, which decreased a respective 17% and 13% year over year before and after the foreign exchange impact.

Adjusted operating income decreased 11% year over year to $80.4 million due to the timing shifts of some large contracts.

Zacks Rank & Upcoming Releases

Dun & Bradstreet carries 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 second-quarter earnings reports from key players like Cardlytics (CDLX - Free Report) , CDTi Advanced Materials and Switch (SWCH - Free Report) . While Cardlytics and CDTi Advanced Materials will report their quarterly numbers on Aug 14, Switch will release results on Aug 13.

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