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Dun & Bradstreet (DNB) |
HenryTo
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Joined: 06 Aug 2004
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 Posted: Fri Oct 28, 2011 11:03 pm Post subject: Dun & Bradstreet (DNB) |
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Morningstar on DNB's 3Q earnings. Note DNB was featured in our September 9, 2011 guest commentary by Rick Konrad.
http://www.marketthoughts.com/zs20110909.html
| Quote: | | Dun & Bradstreet DNB reported solid growth in the third quarter. Revenue rose 7% year over year, or 10% excluding currency effects. However, much of this growth came from an acquisition. Modest growth of only 2% in North America was buoyed by stronger growth in Asia and Europe. Excluding one-time items, operating margins improved to 27.0% from 26.0% last year, as the company's Asian operations moved into the black. Share-repurchase activity was a little light this quarter, with the company buying back only $33 million in shares. However, the company announced a new $500 million share-repurchase program and reiterated its intention to return its free cash flow to shareholders through buybacks and dividends. We view this positively as we believe that this is the bes t use of the company's cash flow. |
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rffrydr
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Joined: 30 Oct 2005
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Location: Sunny California
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| Posted: Tue May 08, 2012 6:15 pm Post subject: |
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What to do when your market IS a tangled web?!
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Today is the Tomorrow you worried about Yesterday! |
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HenryTo
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Location: Los Angeles, California
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| Posted: Tue May 08, 2012 12:56 pm Post subject: |
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Morningstar on DNB's latest earnings. Stock down 14% as I am typing this.
| Quote: | | Dun & Bradstreet DNB started 2012 on the wrong note. Core revenue increased only 1%, as weakness in its risk management segment had a negative impact on growth. This area saw some modest revenue compression, and the company noted that it saw customers pull back on usage in the quarter and also saw a decline in project-related work. This quarter reversed a recent trend toward modest growth in this area . Other areas performed roughly in line with expectations. The company also made some announcements regarding its issues in China. Management has decided to shutter a business that has drawn complaints from the Chinese government that it violated consumer privacy. We view this as the best move, as this business did not generate a material amount of profitability, and the company is better off just putting this issue behind it, in our view. While the company gave some guidance on the costs associated with closing the Chinese business, these charges are not material to our valuation. A second bigger issue is potential violations of the Corrupt Foreign Practices Act in China. While the ultimate outcome of this issue is unknown, we take some comfort from the fact that the company self-reported these problems. The combination of domestic weakness in risk management and the closing of the Chinese business led the company to lower its guidance for the year. While we will need to adjust our near-term assumptions to take this revenue shortfall into our account, our initial impression is that the market is overreacting to a weak quarter and the revised guidance. Short of very large fines related to the Chinese issues, we don't see these developments as having a major impact on the company's long-term value. We are placing our fair value estimate under review, although we expect to reduce it only modestly. |
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