Post Earnings Coverage as Dun & Bradstreet Outperformed Top- and Bottom-Line Expectations

Upcoming AWS Coverage on Broadridge Financial Solutions Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 12, 2017 / Active Wall St. announces its post-earnings coverage on The Dun & Bradstreet Corp. (NYSE: DNB). The Company reported its first quarter fiscal 2017 results on May 01, 2017. The business information provider reported a 2% increase in revenue and also re-affirmed its guidance for fiscal 2017. Register with us now for your free membership at:

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One of The Dun & Bradstreet’s competitors within the Information & Delivery Services space, Broadridge Financial Solutions, Inc. (NYSE: BR), released its financial results for Q3 and nine months ended March 31, 2017, on Wednesday, May 10, 2017. AWS will be initiating a research report on Broadridge Financial Solutions in the coming days.

Today, AWS is promoting its earnings coverage on DNB; touching on BR. Get our free coverage by signing up to:

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Earnings Reviewed

For the period ended March 31, 2017, Dun & Bradstreet reported revenue of $383.8 million, up 2% for the quarter compared to revenue of $377.6 million. The Company’s organic revenue grew 1%, adjusted for the impact of divestiture of Benelux and Latin America markets during Q4 2016 as well as the acquisition of Avention in FY17. Dun & Bradstreet’ revenue numbers exceeded analysts’ consensus of $378.4 million.

During Q1 2017, Dun & Bradstreet’s operating income declined 9% to $67.2 million, which was better than expected due to the better performance on its top-line. The decline in the reported quarter operating income was consistent with the Company’s typical pattern of lower earnings in H1 and growth in H2. Dun & Bradstreet are expecting a similar rate of decline in operating income in the upcoming quarter before improvement in H2 FY17.

For Q1 2017, Dun & Bradstreet EPS declined to $0.42 per share compared to EPS of $0.82 per share in Q1 2016 due to the lower operating income and higher interest expense as well as the slightly higher shares outstanding. The Company’s earnings, adjusted for costs related to mergers and acquisitions and restructuring costs, totaled $0.95 per share, beating Wall Street’s expectations of $0.89 per share.

Segment Results

During Q1 2017, Dun & Bradstreet’s Americas segment reported GAAP revenue of $314.5 million, up 2% on a y-o-y basis both after and before the effect of foreign exchange. On an adjusted basis, the segment’s revenue totaled $316.3 million. The Americas’ segment reported GAAP operating income of $56.7 million, down 19% on a y-o-y basis, reflecting acquisition-related costs, such as deal fees and amortization of intangibles. On an adjusted basis, the segment’s operating income declined 13% to $69.4 million for the reported quarter.

For Dun & Bradstreet’s non-Americas’ segment GAAP revenue fell 1% on a y-o-y basis to $67.0 million in Q1 2017 after the effect of foreign exchange, while it grew 4% excluding the effect of foreign exchange. On an adjusted basis, the segment’s revenue totaled $67.5 million. During the reported quarter, the segment’s GAAP operating income surged 45% to $18.8 million, while on an adjusted basis the operating income grew 49% to $19.3 million.

Balance Sheet

Dun & Bradstreet ended Q1 2017 with $1.7 billion of debt, including about $1 billion of fixed rate senior notes and $700 million of floating rate debt. The Company’s cash balance was $375 million for net debt of $1.3 billion.

On May 10, 2017, Dun & Bradstreet announced that its Board of Directors has declared a quarterly cash dividend of $0.5025 per share. This quarterly cash dividend is payable on June 09, 2017 to shareholders of record at the close of business on May 24, 2017.

Outlook

Dun & Bradstreet’ reiterated its FY17 guidance metrics, including organic revenue growth of 1% to 3%, total revenue growth of 3% to 5%, operating income about flat or between minus 2% and plus 2%, EPS down between 4% and 9%, and free cash flow in the range of $250 million to $245 million.

Stock Performance

At the closing bell, on Thursday, May 11, 2017, Dun & Bradstreet’s stock slightly fell 0.64%, ending the trading session at $109.95. A total volume of 321.47 thousand shares were traded at the end of the day. In the last month, shares of the Company have advanced 3.09%. The stock is trading at a PE ratio of 46.49 and has a dividend yield of 1.83%.

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