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Dun & Bradstreet (DNB) Q1 Earnings: What's in the Cards?

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The Dun & Bradstreet Corporation (DNB - Free Report) is slated to report first-quarter 2018 results on May 9, after market close.

While the top line is expected to benefit from higher organic growth and acquisitions; lower tax rates and improvement in operating income are likely to boost the bottom line.

We observe that shares of Dun & Bradstreet have gained 2.9% in the past year but underperformed the S&P 500’s and industry’s gain of 23% and 11%, respectively.

 

Revenue Expectations Encouraging

The Zacks Consensus Estimate for first-quarter 2018 revenues stands at $387.39 million, indicating year-over-year growth of 1.5%. The top line is expected to benefit from higher organic growth, favorable foreign currency movements, acquisitions and dispositions.

The Zacks Consensus Estimate for the Americas segment revenues is $317 million, indicating year-over-year growth of 0.3%. In fourth-quarter 2017, segment revenues improved 2% to $448.1 million.

The consensus estimate for Non Americas segment revenues is pegged at $68.5 million, indicating year-over-year growth of 2.8%.In fourth-quarter 2017, segment revenues improved 4% to $78.9 million.

In fourth-quarter 2017, total revenues increased 1.9% year over year to $527 million.

Earnings to Improve Year Over Year

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.04 per share, indicating year-over-year growth of 9.5%. Lower tax rates (as a result of Tax Cuts and Jobs Act) and improvement in operating income are likely to boost the company’s bottom line.

In fourth-quarter 2017, adjusted earnings of $3.22 per share were up 7.7% from the year-ago quarter.

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.

Stocks to Consider

Here are some 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 their respective upcoming releases:

Paychex, Inc. (PAYX - Free Report) has an Earnings ESP of +9.28% and a Zacks Rank #3. The company is expected to report fourth-quarter fiscal 2018 results on Jun 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

FactSet Research Systems Inc. has an Earnings ESP of +0.23% and a Zacks Rank #3. The company is expected to report third-quarter fiscal 2018 earnings on Jun 26.

WEX Inc. (WEX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is expected to report second-quarter 2018 results on Jul 26.

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