Dun & Bradstreet Earnings: Here’s Why Investors are Not Happy Now

Dun & Bradstreet Corp. (NYSE:DNB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6%.

Dun & Bradstreet Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.23% to $2.38 in the quarter versus EPS of $2.21 in the year-earlier quarter.

Revenue: Decreased 7.14% to $463.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dun & Bradstreet Corp. reported adjusted EPS income of $2.38 per share. By that measure, the company missed the mean analyst estimate of $2.41. It missed the average revenue estimate of $474.1 million.

Quoting Management: “2012 proved to be a challenging year primarily due to weakness in our North America business. While we were not satisfied with our overall top line performance, we are pleased with the successful completion of the build and market test of our new data supply chain,” said Sara Mathew, Chairman and Chief Executive Officer. “Looking ahead, we are focused on driving growth in North America by leveraging our new infrastructure and making substantial investments in data and analytics. We believe these actions enhance our existing offerings and allow us to expand into adjacent markets that provide the foundation to return our business to sustainable growth.”

Key Stats (on next page)…

Revenue increased 12.08% from $413.2 million in the previous quarter. EPS increased 35.23% from $1.76 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.49 to a profit $1.5. For the current year, the average estimate has moved up from a profit of $6.91 to a profit of $7 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)