Dun & Bradstreet (DNB) Q4 Earnings Beat, Revenues Grow Y/Y

The Dun & Bradstreet Corporation (NYSE:DNB) reported fourth-quarter 2017 results wherein adjusted earnings of $3.22 per share beat the Zacks Consensus Estimate of $3.03 and increased 7.7% on a year-over-year basis.

On an adjusted basis and after including forex effect, total revenues came in at $528.3 million, up 2.2% year over year. On a GAAP basis, revenues were $527 million, up 1.9%. The Zacks Consensus Estimate was pegged at $537 million.

Full Year Results at a Glance

D&B reported adjusted earnings of $7.36 per share for 2017, which improved by a penny over 2016. Adjusted revenues for 2017 came in at $1.75 billion, up 2.3% year over year.

Revenues from Risk Management Solutions were nearly $1.01 billion, comprising 57.7% of 2017 total revenues. Revenues from Sales and Marketing Solutions were $740.7 million, comprising 42.3% of total revenues.

Quarter Details

Organic revenues came in at $512.9 million, up 0.5% (before effects of forex) year over year.

Region-wise, adjusted revenues (and after including forex effect) from the company’s Americas segment (85.1% of total) were up 2% year over year to $449.4 million while that from Non-Americas (14.9%) increased 4% to $78.9 million.

Segment-wise, on an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas decreased 1% year over year to $208 million. Nonetheless, Sales and Marketing Solutions revenues from the region grew 4.4% from the year-ago quarter to $241.4 million.

In Non-Americas, adjusted Risk Management Solutions revenues increased 1% year over year to $62 million. Sales and Marketing Solutions Non-Americas grew 16.6% from the year-ago quarter to $16.9 million.

Margins

On an adjusted basis, total operating costs remained flat at $336.4 million. Adjusted total operating income was $191.9 million, up 6.2% year over year. Adjusted operating margin of 36.3% expanded 140 basis points (bps) from the year-ago quarter.

Balance Sheet & Cash Flow

As of Dec 31, 2017, the company’s cash and cash equivalents were $442.4 compared with $431 million as of Sep 30, 2017. Long-term debt was approximately $1.65 billion. The company’s net debt position as of Dec 31, 2017 was $1.24 billion.

For 2017, cash flow from operating activities was $286.5 million compared with $322.7 million in 2016. Free cash flow for 2017 was $224.4 million, down 15% year over year.

Zacks Rank & Stocks to Consider

D&B carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Micron Technology Inc. (NASDAQ:MU) , Lam Research Corporation (NASDAQ:LRCX) and Paycom Software Inc. (NYSE:PAYC) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Micron, Lam Research and Paycom Software is projected to be 10%, 14.9% and 25.8%, respectively.

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