This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Dun & Bradstreet (DNB) Is Down Today

NEW YORK (TheStreet) -- Dun & Bradstreet (DNB - Get Report) was falling 10.2% to $95.67 Tuesday after the company announced its fourth-quarter results that missed estimates.

For its fourth-quarter, the company posted earnings of $2.75 a share. Analysts surveyed by Thomson Reuters estimated earnings of $2.82 for the quarter. Revenue for the quarter was up 3% to $467.7 million, though that still missed analyst estimates of $468.7 million.

Net income fell 22% in the quarter because D&B took charges when it wrote off assets in an effort to cut costs. The company also had to pay legal fees after a Chinese court fined a unit for illegally buying information about Chinese consumers.

TheStreet Ratings team rates DUN & BRADSTREET CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

Must Read: Why Alliance Fiber Optic Products (AFOP) is Suffering Double-Digit Damage

"We rate DUN & BRADSTREET CORP (DNB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.70% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DNB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DUN & BRADSTREET CORP has improved earnings per share by 6.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DUN & BRADSTREET CORP increased its bottom line by earning $6.48 versus $5.30 in the prior year. This year, the market expects an improvement in earnings ($7.70 versus $6.48).
  • Net operating cash flow has slightly increased to $64.60 million or 1.73% when compared to the same quarter last year. In addition, DUN & BRADSTREET CORP has also modestly surpassed the industry average cash flow growth rate of -0.27%.
  • The gross profit margin for DUN & BRADSTREET CORP is rather high; currently it is at 67.92%. Regardless of DNB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DNB's net profit margin of 17.70% significantly outperformed against the industry.
  • DNB, with its decline in revenue, underperformed when compared the industry average of 18.5%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: DNB Ratings Report

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DNB $110.97 0.00%
AAPL $94.98 -0.21%
FB $116.77 -0.56%
GOOG $692.36 0.00%
TSLA $230.00 -1.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs