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Dun & Bradstreet (DNB) Up 6.5% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Dun & Bradstreet Corporation (The) (DNB - Free Report) . Shares have added about 6.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dun & Bradstreet's Q4 Earnings Miss, Revenues Beat
The Dun & Bradstreet Corporation reported fourth-quarter 2016 results wherein adjusted earnings of $2.99 per share fell short of the Zacks Consensus Estimate of $3.02 but revenues of $517.1 million beat the consensus mark of $514.5 million.
On a year-over-year basis, the metrics registered growth of 4.2% and 3.6%, respectively.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $517.1 million, up 2% year over year. Adjusted deferred revenues were up 2% after including forex effect.
Organic revenues came in at $512.4 million, up 5% before the effect of forex.
Region wise, revenues from the company’s Americas segment were up 5% year over year to $441.2 million whereas that from Non-Americas declined 8% to $75.9 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 $210 million. Sales & Marketing Solutions revenues from the region grew 8% from the year-ago quarter to $231.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $61.4 million. Sales & Marketing Solutions Non-Americas fell 21% from the year-ago quarter to $14.5 million.
Margins
On an adjusted basis, total operating costs were down 2% to $336.4 million. Adjusted total operating income was $180.7 million, up 4% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $352.6 million in cash and cash equivalents and long-term debt of $1.595 billion. The company’s net debt position as of Dec 31, 2016 was $1.264 billion.
For the year, cash flow from operating activities was $322.7 million while free cash flow was $262.5 million, down 4% year over year.
The company also announced a dividend hike of 4%. The company’s new dividend of $0.5025 per share will be paid on Mar 10, 2017 to shareholders as of Feb 23.
Outlook
Management expects revenues from Salesforce partnership to decline in 2017. Plus, increasing investments to sell D&B Hoover on the CRM platform will impact yearly revenues. Management expects revenues of 3% to 5% growth while organic revenue to grow in the range of 1% to 3%. Earnings per share will decline in the range of 4% to 9% mainly due to increases in interest expense. Free cash flow is expected to be in the band of $215 million to $245 million. Operating income is expected to grow in the range of negative 2% to positive 2%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Dun & Bradstreet Corporation (The) Price and Consensus
At this time, Dun & Bradstreet's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. The stock was also allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value, momentum and growth investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Dun & Bradstreet (DNB) Up 6.5% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Dun & Bradstreet Corporation (The) (DNB - Free Report) . Shares have added about 6.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Dun & Bradstreet's Q4 Earnings Miss, Revenues Beat
The Dun & Bradstreet Corporation reported fourth-quarter 2016 results wherein adjusted earnings of $2.99 per share fell short of the Zacks Consensus Estimate of $3.02 but revenues of $517.1 million beat the consensus mark of $514.5 million.
On a year-over-year basis, the metrics registered growth of 4.2% and 3.6%, respectively.
Quarter Details
On an adjusted basis and after including forex effect, total revenue came in at $517.1 million, up 2% year over year. Adjusted deferred revenues were up 2% after including forex effect.
Organic revenues came in at $512.4 million, up 5% before the effect of forex.
Region wise, revenues from the company’s Americas segment were up 5% year over year to $441.2 million whereas that from Non-Americas declined 8% to $75.9 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 $210 million. Sales & Marketing Solutions revenues from the region grew 8% from the year-ago quarter to $231.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $61.4 million. Sales & Marketing Solutions Non-Americas fell 21% from the year-ago quarter to $14.5 million.
Margins
On an adjusted basis, total operating costs were down 2% to $336.4 million. Adjusted total operating income was $180.7 million, up 4% year over year.
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $352.6 million in cash and cash equivalents and long-term debt of $1.595 billion. The company’s net debt position as of Dec 31, 2016 was $1.264 billion.
For the year, cash flow from operating activities was $322.7 million while free cash flow was $262.5 million, down 4% year over year.
The company also announced a dividend hike of 4%. The company’s new dividend of $0.5025 per share will be paid on Mar 10, 2017 to shareholders as of Feb 23.
Outlook
Management expects revenues from Salesforce partnership to decline in 2017. Plus, increasing investments to sell D&B Hoover on the CRM platform will impact yearly revenues. Management expects revenues of 3% to 5% growth while organic revenue to grow in the range of 1% to 3%. Earnings per share will decline in the range of 4% to 9% mainly due to increases in interest expense. Free cash flow is expected to be in the band of $215 million to $245 million. Operating income is expected to grow in the range of negative 2% to positive 2%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Dun & Bradstreet Corporation (The) Price and Consensus
Dun & Bradstreet Corporation (The) Price and Consensus | Dun & Bradstreet Corporation (The) Quote
VGM Scores
At this time, Dun & Bradstreet's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. The stock was also allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value, momentum and growth investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.