Dun & Bradstreet Holdings, Inc. (NYSE:DNB) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Dun & Bradstreet Holdings, Inc. (NYSE:DNB) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to US$22.60 in the week after its latest quarterly results. The results don't look great, especially considering that statutory losses grew 32% toUS$0.06 per share. Revenues of US$509m did beat expectations by 4.0%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Dun & Bradstreet Holdings

Taking into account the latest results, the consensus forecast from Dun & Bradstreet Holdings' eleven analysts is for revenues of US$2.16b in 2021, which would reflect a notable 17% improvement in sales compared to the last 12 months. Dun & Bradstreet Holdings is also expected to turn profitable, with statutory earnings of US$0.043 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.16b and earnings per share (EPS) of US$0.055 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$29.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Dun & Bradstreet Holdings at US$33.00 per share, while the most bearish prices it at US$24.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Dun & Bradstreet Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.5% per year. So it looks like Dun & Bradstreet Holdings is expected to grow faster than its competitors, at least for a while.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$29.00, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Dun & Bradstreet Holdings going out to 2025, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Dun & Bradstreet Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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