Lowered Forecast Hammers D&B (DNB, EFX, FICO, MCO, MHP)

May 8, 2012 by Paul Ausick

Dun & Bradstreet Corp. (NYSE: DNB), one of the venerable names in business and credit data, is taking some lumps this morning following lowered fiscal year forecast and the closure of one of the company’s Chinese units that is currently being investigated by the Chinese government.

Along with Equifax Inc. (NYSE: EFX), Fair Isaac Corp. (NYSE: FICO), Moody’s Corp. (NYSE: MCO), and the Standard & Poor’s division of The McGraw-Hill Companies Inc. (NYSE: MHP), D&B provides the information many lenders use to make credit decisions. Unlike the other companies, D&B has not been able to hit an EPS estimate for several quarters in a row now. Revenue estimates have fared just as badly.

Perhaps as an effort to reset expectations, D&B revised its revenue growth estimate from a range of 3% to 5% to a new range of 0-3% when it reported quarterly results last night. The downward change likely recognizes the increasing competition from competitors like Equifax and Moody’s.

D&B’s shares are down -13.8% at $65.26 in a 52-week range of $58.50-$86.52.

Paul Ausick

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