Dun & Bradstreet (NYSE:DNB) Profits Drop but Beat First-quarter Estimates

Dun & Bradstreet (NYSE:DNB) reported its first-quarter profits, and as expected, they took a steep hit on their profits as revenues declined and they had to take a tax charge.

Even so, the good news is they did manage to beat analysts' expectations.

After preferred dividends were paid, earnings dropped to $47 million, or 92 cents a share on revenue of $392.2 million. That compares with last years earnings during the first quarter of $104.2 million, or $1.93 a share, on revenue of $407.4 million.

Revenue dropped mostly on business in North America falling in the quarter by 5 percent over last year, falling from $321.2 million to $304.9 million.

Analyst were looking for a profit of $1.16 a share on revenue of $401.8 million. The numbers are different from those above because analysts normally don't include one-off items, which are included in the above results.

The non-cash tax charge was 26 cents a share on the value of a deferred tax asset being deferred because of the health care  bill passed. Excluding the one-off items of Dun & Bradstreet, earnings a share came to $1.29.

The company reiterated its guidance for the year, saying core revenue should grow from between one to three percent, not including the cost of foreign exchange rate fluctuations. Before non-core gains and charges earnings projects are from between one to six percent.