Dun & Bradstreet Shares Plunge 15% As Q4 Adj Profit Misses View

(RTTNews) - Shares of Dun & Bradstreet Corp. (DNB) plunged more than 15 percent in after-hours trading on Monday after the financial information provider reported a profit for the fourth quarter that declined 22 percent from last year, reflecting hefty impairment charges, and missed analysts' expectations. Meanwhile, quarterly revenues topped their estimates.

The company also announced a 10 percent increases in quarterly dividend, and a management rejig.

"Fourth quarter results were in line with our expectations, with growth in both North America and International. With 2013 behind us, we are excited to execute our new strategy which is aimed at delivering long term sustainable growth," President and CEO Bob Carrigan said in a statement.

Carrigan added that he will share the company's strategy and outlook for the future, including the 2014 guidance, with the investment community during a call on Tuesday morning.

The Short Hills, New Jersey-based 172 year old company reported net income of $75.3 million or $1.96 per share for the fourth quarter profit, lower than $96.0 million or $2.20 per share in the prior-year quarter.

Results for the latest quarter primarily include a $0.60 per share charge related to the write-off of the new data supply chain.

Excluding items, adjusted net income for the quarter was $105.5 million or $2.75 per share, compared to $103.7 million or $2.38 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $2.82 per share for the quarter. Analysts' estimates typically exclude special items.

Dun & Bradstreet's total revenues for the quarter grew 4 percent to $476.7 million, from $463.1 million in the same quarter last year, and topped five Wall Street analysts' consensus estimate of $468.67 million. Revenues were up 3 percent after the effect of foreign exchange.

Revenue for North America, which generates majority of revenues, grew 4 percent to $366.2 million, and international revenues grew 2 percent to $110.5 2 million from last year, with Asia Pacific revenues growing 7 percent, while Europe and other international market revenues declined 3 percent.

Operating margin for the quarter contracted 600 basis points to 28.3 percent from last year's 34.3 percent.

D&B also declared a 10 percent increased quarterly cash dividend of $0.44 per share from $0.40 per share. payable on March 12 to shareholders of record at the close of business on February 25, 2014.

For fiscal 2013, the company reported net income of $258.5 million or $6.54 per share, compared to $295.4 million or $6.43 per share in the prior year. Excluding items, adjusted net income for the year was $300.5 million or $7.60 per share, compared to $318.7 million or $6.94 per share in the year ago. Total revenues for the full year remained relatively flat with last year at $1.66 billion.

Street was looking for full-year 2013 earnings of $7.70 per share on revenues of $1.65 billion.

The company also simplified its organizational structure with six direct reports to Carrigan, each of whom has global responsibilities. Rich Veldran remains CFO, and Chris Hill continues her position as Chief Legal Officer.

Meanwhile, Josh Peirez has been promoted to chief operating officer, and Mark Geneste to chief sales officer. Rishi Dave will join as chief marketing officer, effective February 24, from Dell, Inc., and John Reid-Dodick joins as chief people officer, effective February 4, from AOL, Inc. (AOL).

DNB closed Monday's regular trading session at $106.46, down $3.54 or 3.22% on a volume of 1.02 million shares. The stock lost a plunged a further $16.21 or 15.23% in after-hours trading.