Why Dun & Bradstreet's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of credit data provider Dun & Bradstreet (NYS: DNB) fell 14% today after releasing earnings after the market closed yesterday.

So what: The company saw revenue fall slightly to $402.8 million and earnings per share rise 27% to $63.4 million, or $1.32 per share. On an adjusted basis, earnings were $1.35 per share, $0.03 below estimates. The company also said it would be closing an embattled Chinese unit and lowered growth guidance to flat to 3% growth.

Now what: There is a lot of uncertainty for the company right now, and investors are taking a cautious approach. The slower growth should be expected with the loss of the Chinese unit, but beyond that shares aren't looking terrible from a value perspective. Dividend yield is currently at 2% and shares trade at 12 times trailing earnings. I'm not jumping in the fire just yet, but if shares continue to fall the value proposition becomes pretty strong.

Interested in more info on Dun & Bradstreet? Add it to your watchlist byclicking here.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story