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Dun & Bradstreet (DNB) Tops Q1 Earnings & Revenue Estimates

The Dun & Bradstreet Corporation DNB reported strong first-quarter 2018 results with earnings and revenues surpassing the Zacks Consensus Estimate.

Adjusted earnings of $1.24 per share beat the consensus mark by 20 cents and increased 30.5% year over year.

Total revenues of $418.2 million beat the Zacks Consensus Estimate of $387.4 million. The figure was up 9.6% year over year. Adjusted revenues of $384.7 million were up 0.2% from the year-ago quarter. Organic revenues in the reported quarter grew 0.4% from the year-ago quarter and were in line with adjusted revenues.

Dun & Bradstreet Corporation (The) Revenue (TTM)

 

Dun & Bradstreet Corporation (The) Revenue (TTM) | Dun & Bradstreet Corporation (The) Quote

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We observe that shares of Dun & Bradstreet have gained 5.6% in the past three months, outperforming the S&P 500’s gain of 0.5%.

 

Let’s check out the numbers.

Revenues by Segment

Americas segment (83% of total revenues) revenues increased 9.9% from the year-ago quarter to $345.7 million. Adjusted revenues of $311.5 million were down 2% year over year.

In terms of product lines, adjusted Risk Management Solutions revenues from Americas decreased 3.7% year over year to $175.2 million. Sales and Marketing Solutions revenues from the region grew 1.5% from the year-ago quarter to $136.3 million.

Non-Americas segment (17% of total revenues) revenues increased 8.2% from the year-ago quarter to $72.5 million. Adjusted revenues of $73.2 million were up 8% year over year.

In terms of product lines, adjusted Risk Management Solutions revenues from Non-Americas increased 6.9% year over year to $58.2 million. Sales and Marketing Solutions grew 14.5% from the year-ago quarter to $15 million.

Operating Results

Total operating income came in at $94.7 million compared with $41.3 million in the year-ago quarter. Americas operating income was $106.4 million, up 85% year over year. Non-Americas operating income was $20.4 million, up 12% year over year.

Adjusted operating income increased 6.4% year over year to $71.9 million. Adjusted operating income for Americas was $71.6 million, up 2% year over year. Adjusted operating income for Non-Americas was $21.2 million, up 13% year over year.

Operating income margin rose to 22.6% from 10.8% in the year-ago quarter. Adjusted operating income margin was 17.2% compared with 17.7% in the year-ago quarter.

On an adjusted basis, total operating costs grew 1.1% from the year-ago quarter to $312.8 million.

Balance Sheet and Cash Flow

Dun & Bradstreet exited first-quarter 2018 with cash and cash equivalents of $188.1 million compared with $442.4 million at the end of December 2017. As of Mar 31, 2018, long-term debt was $1.3 billion, down from $1.6 billion at the end of December 2017. The company’s net debt position was $1.1 billion compared with $1.2 billion as of Dec 31, 2017.

The company generated $121.6 million of cash from operating activities in the reported quarter compared with $123.8 million in the year-ago quarter. Free cash flow was $106.7 million compared with $108.3 million in the year-ago quarter.

Dividend Payment

Concurrent with the earnings release, Dun & Bradstreet announced a quarterly cash dividend of 52.25 cents per share. The dividend will be paid on Jun 8 to shareholders of record at the close of business on May 23.

Zacks Rank & Upcoming Releases

Dun & Bradstreet currently has 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 earnings reports from key players like ABM Industries Incorporated ABM, Accenture plc ACN and FactSet Research Systems Inc. FDC. While Accenture and FactSet Research Systems are expected to report third-quarter fiscal 2018 numbers on Jun 28 and Jun 26, respectively, ABM Industries is expected to release second-quarter fiscal 2018 results on Jun 6.

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