Analysts Have Made A Financial Statement On Dun & Bradstreet Holdings, Inc.'s (NYSE:DNB) Second-Quarter Report

It's been a good week for Dun & Bradstreet Holdings, Inc. (NYSE:DNB) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.3% to US$11.82. It was a pretty bad result overall; while revenues were in line with expectations at US$576m, statutory losses exploded to US$0.04 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Dun & Bradstreet Holdings after the latest results.

See our latest analysis for Dun & Bradstreet Holdings

Taking into account the latest results, Dun & Bradstreet Holdings' nine analysts currently expect revenues in 2024 to be US$2.41b, approximately in line with the last 12 months. Dun & Bradstreet Holdings is also expected to turn profitable, with statutory earnings of US$0.045 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.42b and earnings per share (EPS) of US$0.069 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at US$13.99, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dun & Bradstreet Holdings, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$10.40 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Dun & Bradstreet Holdings' revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Dun & Bradstreet Holdings.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dun & Bradstreet Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dun & Bradstreet Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$13.99, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Dun & Bradstreet Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Dun & Bradstreet Holdings (1 makes us a bit uncomfortable!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com