Dun & Bradstreet Corp.
) is set to report first quarter 2014 results on Apr 29. Last
quarter, it posted a 3.51% negative surprise. We note that DNB
has outperformed the Zacks Consensus Estimate in the preceding
four quarters with an average positive surprise of 1.92%.
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
DNB reported mixed results in the fourth quarter of 2013. The
company's high-margin business model, strong international growth
potential, emerging market growth opportunities, strategic
investments, incremental cost savings and new product pipeline
will drive growth going forward.
The company has recently entered into strategic partnerships with
as the likes of
), SugarCRM, and FirstRain. These alliances are expected to help
DNB to expand its data-as-a-service model, which in turn will
drive its top line going forward.
However, we believe that a sluggish macroeconomic environment in
its operating markets remains a major concern. Moreover, we
believe that increasing competition from companies including
) will hurt profitability, going forward.
Our proven model does not conclusively show that DNB is likely to
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zacks ESP: The Most Accurate estimate stands at $1.31 and
coincides with the Zacks Consensus Estimate. Hence, the
difference is of 0.00 %.
Zacks Rank #3 (Hold): DNB's Zacks #3 Rank when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here is one company, which you may want to consider as our
model shows that it has the right combination of elements to post
an earnings beat this quarter:
On Semiconductor Corp.
), Earnings ESP of 6.67% and Zacks Rank #1 (Strong Buy)
SALESFORCE.COM (CRM): Free Stock Analysis
DUN &BRADST-NEW (DNB): Free Stock Analysis
EQUIFAX INC (EFX): Free Stock Analysis Report
ON SEMICON CORP (ONNN): Free Stock Analysis
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