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Wednesday, June 08, 2005

InfoUSA (IUSA) lowers 2005 guidance...

Wow, I don't really follow IUSA, but their guidance revision is a whopper. I'm glad I'm not in that stock. In summary, they lowered revenue expectations from $395MM to $375MM and EBITDA from $70 to $65MM for fiscal 2005. The weakness is largely attributed to the Donnelly and Small Business BUs.
I've believe that IUSA is in a tough business; selling marketing leads. I think I'd rather own a company like Dun & Bradstreet (DNB) in this space -- they just announced a strong quarter and confirmed guidance. Execution matters and considering that they're both trading around 10.5x EBITDA (I believe -- rough estimate), then DNB is clearly a better hold here.


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