Cannae (NYSE:CNNE) Releases Earnings Results, Misses Expectations By $0.30 EPS

by · The Cerbat Gem

Cannae (NYSE:CNNE – Get Free Report) posted its earnings results on Monday. The company reported ($0.70) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.40) by ($0.30), FiscalAI reports. The company had revenue of $96.20 million for the quarter, compared to analyst estimates of $99.77 million. Cannae had a negative return on equity of 31.78% and a negative net margin of 121.15%.

Here are the key takeaways from Cannae’s conference call:

  • () Returned ~$51 million to shareholders in Q1 (buybacks + regular dividend), repurchased 3.4M shares (~7.3% of outstanding) for $43M and expanded repurchase authorization to 14.9M shares to continue opportunistic buybacks.
  • () Black Knight Football showed material operational and financial momentum — AFC Bournemouth sits sixth in the Premier League (potential first-ever European qualification), 12-month revenue +19% to $274M, EBITDA rose to $136M driven by a jump in player trading profits and improved adjusted EBITDA.
  • () The restaurant group drove the revenue decline (total operating revenues down 7% YoY) with closures and lower traffic; management has labelled restaurants non-core, is pursuing a sale process, and recorded ~$8M of non-cash impairments in the quarter.
  • () Corporate discipline improved the holding company profile — holding company costs fell ~45% YoY to $8.9M, corporate cash was $123M at quarter end (approximately $90M after post-quarter buybacks), and management expects a ~$45M tax refund plus ~$10M tax assets later this year.

Cannae Trading Down 2.3%

NYSE CNNE traded down $0.32 during trading hours on Monday, hitting $13.87. 462,254 shares of the company’s stock were exchanged, compared to its average volume of 611,083. The stock has a 50-day simple moving average of $12.21 and a 200 day simple moving average of $14.55. Cannae has a 1-year low of $10.46 and a 1-year high of $21.96. The firm has a market cap of $613.30 million, a price-to-earnings ratio of -1.55 and a beta of 1.18. The company has a current ratio of 2.07, a quick ratio of 2.07 and a debt-to-equity ratio of 0.07.

Cannae Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $0.60 annualized dividend and a yield of 4.3%. Cannae’s dividend payout ratio (DPR) is currently -6.73%.

Institutional Investors Weigh In On Cannae

Several large investors have recently added to or reduced their stakes in CNNE. Mercer Global Advisors Inc. ADV bought a new position in Cannae in the fourth quarter worth approximately $299,000. XTX Topco Ltd bought a new position in Cannae in the fourth quarter worth approximately $2,362,000. VARCOV Co. bought a new position in Cannae in the fourth quarter worth approximately $533,000. Saba Capital Management L.P. boosted its holdings in Cannae by 23.3% in the fourth quarter. Saba Capital Management L.P. now owns 1,714,994 shares of the company’s stock worth $26,977,000 after acquiring an additional 323,531 shares in the last quarter. Finally, Man Group plc boosted its holdings in Cannae by 11.3% in the fourth quarter. Man Group plc now owns 512,577 shares of the company’s stock worth $8,063,000 after acquiring an additional 52,209 shares in the last quarter. Institutional investors and hedge funds own 88.12% of the company’s stock.

Analyst Ratings Changes

CNNE has been the subject of a number of recent research reports. Stephens reissued an “overweight” rating and issued a $17.00 target price on shares of Cannae in a research report on Thursday, April 23rd. Weiss Ratings reissued a “sell (d-)” rating on shares of Cannae in a research report on Wednesday, April 8th. Finally, Royal Bank Of Canada reissued an “outperform” rating and issued a $17.00 target price on shares of Cannae in a research report on Tuesday, April 21st. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Cannae presently has a consensus rating of “Hold” and a consensus target price of $17.00.

Read Our Latest Stock Report on Cannae

About Cannae

(Get Free Report)

Cannae Holdings, Inc (NYSE: CNNE) is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae’s investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing.

Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients.

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