Dun & Bradstreet Holdings’ Fiscal 2023 Preview

RBC Capital analysts provided their outlook on Dun & Bradstreet Holdings, Inc. (NYSE:DNB) for fiscal 2023, noting that the anniversary of the GSA contract, momentum in KYC/Supply Chain Management, and strength in Online B2B marketing, along with an acceleration in the Vitality Index and pricing tailwinds, bode well for revenue growth.

The analysts expect the company to guide to 3-5% organic revenue growth and revenues in the range of $2.270-$2.315 billion, compared to the Street estimate of $2.299 billion.

According to the analysts, Bisnode cost synergies bode well for margin expansion in 2023, where they model approximately 50bps of margin expansion; however, higher interest expenses and lower pension income could potentially weigh on the EPS growth, resulting in flattish EPS growth in 2023. The analysts expect the company to guide EPS in the range of $1.09-$1.13, compared to the Street estimate of $1.12.

RBC Capital analysts lowered their price target on Dun & Bradstreet Holdings, Inc. (NYSE:DNB) to $15 from $18 ahead of the company’s upcoming Q3 earnings announcement.

According to the analysts, strength in KYC should sustain solid momentum in F&R. In addition, solid pipeline, pricing, and new product innovation are expected to improve organic growth in the second half of the year.

However, the analysts mentioned they continue to monitor for a potential slowdown in usage-based revenues, S&M, and the impact of European macro weakness on Bisnode. Although investments weighed on H1/22 margins, the analysts believe Bisnode cost synergies should help drive margin expansion in H2/22. However, their updated Q3/22 EPS and 2022 estimates are modestly below the Street estimates due to FX headwinds and higher interest expense.

The analysts expect Q3 revenue to be $557 million, roughly in line with the Street estimates, however, their EPS estimate of $0.28 is modestly below the Street estimate of $0.30. For 2022, the analysts expect revenue/EPS of $2.241 billion/$1.11.

RBC Capital analysts lowered their price target on Dun & Bradstreet Holdings, Inc. (NYSE:DNB) to $15 from $18 ahead of the company’s upcoming Q3 earnings announcement.

According to the analysts, strength in KYC should sustain solid momentum in F&R. In addition, solid pipeline, pricing, and new product innovation are expected to improve organic growth in the second half of the year.

However, the analysts mentioned they continue to monitor for a potential slowdown in usage-based revenues, S&M, and the impact of European macro weakness on Bisnode. Although investments weighed on H1/22 margins, the analysts believe Bisnode cost synergies should help drive margin expansion in H2/22. However, their updated Q3/22 EPS and 2022 estimates are modestly below the Street estimates due to FX headwinds and higher interest expense.

The analysts expect Q3 revenue to be $557 million, roughly in line with the Street estimates, however, their EPS estimate of $0.28 is modestly below the Street estimate of $0.30. For 2022, the analysts expect revenue/EPS of $2.241 billion/$1.11.