D&B Profit Falls 1%

Business information provider D&B(DNB Quote) Wednesday reported its first-quarter earnings fell 1.2% from the year-ago period, on higher tax charges.

The Short Hills, N.J.-based company earned $51.5 million, or 75 cents a share, in the quarter, compared with $52.1 million, or 73 cents a share, a year ago. Adjusted for noncore gains and charges, earnings were $55.7 million, or 81 cents a share. Analysts polled by Thomson First Call were expecting earnings of $56.1 million, or 81 cents a share.

First-quarter revenue, after the effect of foreign exchange, rose 7.6% from the year-ago period to $367.2 million, slightly higher than analysts' expectation of $366.3 million.

The company, formerly known as Dun and Bradstreet, reaffirmed its earlier forecast of full-year earnings to rise 10% to 13% to a range of $3.83 to $3.93 a share, before noncore gains and charges, on core revenue growth of 6% to 8%, before the effect of foreign exchange. The analyst estimate calls for $3.90 a share.

"We feel good about the continued momentum we are driving in the U.S. and the improvements we are seeing within our International segment. With investments geared toward improving our customers' experience and a winning team in place, we are well positioned to deliver strong results in 2006," the company said.

First-quarter operating income rose 19.4% from the year-ago period to $86 million and operating margin improved 232 basis points to 23.4%.

The company's stock fell $1.25, or 1.7%, to close at $74.21 Wednesday.