The Dun & Bradstreet CorporationDNB reported fourth-quarter 2016 results wherein adjusted earnings of $2.99 per share fell short of the Zacks Consensus Estimate of $3.02 but revenues of $517.1 million beat the consensus mark of $514.5 million.
On a year-over-year basis, the metrics registered growth of 4.2% and 3.6%, respectively.
On an adjusted basis and after including forex effect, total revenue came in at $517.1 million, up 2% year over year. Adjusted deferred revenues were up 2% after including forex effect.
Organic revenues came in at $512.4 million, up 5% before the effect of forex.
Region wise, revenues from the company's Americas segment were up 5% year over year to $441.2 million whereas that from Non-Americas declined 8% to $75.9 million.
Segment wise, on an adjusted basis and after including forex effect, Risk Management Solutions revenues from Americas were up 1% year over year to $210 million. Sales & Marketing Solutions revenues from the region grew 8% from the year-ago quarter to $231.2 million.
In Non-Americas, adjusted Risk Management Solutions revenues declined 4% year over year to $61.4 million. Sales & Marketing Solutions Non-Americas fell 21% from the year-ago quarter to $14.5 million.
On an adjusted basis, total operating costs were down 2% to $336.4 million. Adjusted total operating income was $180.7 million, up 4% year over year.
Dun & Bradstreet Corporation (The) Price, Consensus and EPS Surprise
Balance Sheet & Cash Flow
Dun & Bradstreet ended the quarter with $352.6 million in cash and cash equivalents and long-term debt of $1.595 billion. The company's net debt position as of Dec 31, 2016 was $1.264 billion.
For the year, cash flow from operating activities was $322.7 million while free cash flow was $262.5 million, down 4% year over year.
The company also announced a dividend hike of 4%. The company's new dividend of 50.25 cents per share will be paid on Mar 10, 2017 to shareholders as of Feb 23.
Dun & Bradstreet is expected to benefit from its high-margin business model and strong product portfolio. Its partnerships with big players have also helped it bring many more customers into the fold. Plus, the company is also well-positioned to gain from its strategic acquisitions and alliances. The company's focus on expanding analytics capabilities is another positive. Shares of Dun & Bradstreet have outperformed the Zacks Business Information Service industry in the last one year. The company's shares have increased 37.98% compared with the industry's gain of 20.29% during the period.
Though Dun & Bradstreet's Americas business remains strong, the international business continues to be a drag on financials. A weak DNBi business and a high debt are the other areas of concerns. Plus, increasing competition from companies such as S&P Global, Inc. SPGI , FactSet Research Systems Inc. FDS and Nielsen N.V. NLSN and a high debt level remain major concerns.
Currently, Dun & Bradstreet has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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