Cannae (NYSE:CNNE) Announces Quarterly Earnings Results

Cannae (NYSE:CNNE) issued its quarterly earnings data on Monday. The company reported ($0.70) earnings per share for the quarter, missing the consensus estimate of ($0.40) by ($0.30), FiscalAI reports. Cannae had a negative net margin of 103.77% and a negative return on equity of 34.55%. The company had revenue of $96.20 million for the quarter, compared to the consensus estimate of $99.77 million. During the same quarter last year, the business posted ($1.81) earnings per share. Cannae’s revenue was down 6.8% on a year-over-year basis.

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 Stock Performance

Shares of NYSE CNNE traded down $0.22 during mid-day trading on Wednesday, reaching $13.22. 173,235 shares of the company’s stock were exchanged, compared to its average volume of 610,385. Cannae has a 52 week low of $10.46 and a 52 week high of $21.96. The firm has a 50-day moving average price of $12.29 and a two-hundred day moving average price of $14.45. The firm has a market capitalization of $584.77 million, a price-to-earnings ratio of -1.70 and a beta of 1.18. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.07 and a quick ratio of 2.07.

Cannae Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Tuesday, June 16th. Cannae’s payout ratio is presently -6.73%.

Analyst Ratings Changes

Several brokerages have weighed in on CNNE. Royal Bank Of Canada restated an “outperform” rating on shares of Cannae in a research note on Tuesday. Stephens reiterated an “overweight” rating and set a $17.00 target price on shares of Cannae in a research note on Thursday, April 23rd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Cannae in a research note on Wednesday, April 8th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $17.00.

Institutional Investors Weigh In On Cannae

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CNNE. Quantbot Technologies LP bought a new stake in Cannae in the 2nd quarter valued at about $62,000. Kelleher Financial Advisors bought a new stake in Cannae in the 3rd quarter valued at about $73,000. Bank of Montreal Can bought a new stake in Cannae in the 4th quarter valued at about $179,000. Cerity Partners LLC bought a new stake in Cannae in the 4th quarter valued at about $183,000. Finally, BTG Pactual Asset Management US LLC bought a new stake in Cannae in the 4th quarter valued at about $196,000. 88.12% of the stock is currently owned by institutional investors.

About Cannae

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.