Cannae (NYSE:CNNE) Issues Quarterly Earnings Results, Misses Estimates By $1.55 EPS

Cannae (NYSE:CNNE) issued its quarterly earnings results on Monday. The company reported ($1.93) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.38) by ($1.55), Zacks reports. Cannae had a negative return on equity of 23.16% and a negative net margin of 108.39%.The business had revenue of $103.30 million for the quarter, compared to analysts’ expectations of $102.70 million. During the same quarter in the previous year, the firm posted ($0.74) EPS. Cannae’s revenue was down 6.0% on a year-over-year basis.

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

• $630 million in proceeds from the sale of Dun & Bradstreet to Clearlake materially improved Cannae’s liquidity position.
• The board returned significant capital—repurchasing $323 million of stock (~17.4M shares, ~28% outstanding) and raising the quarterly dividend 25% to $0.15—supporting shareholder value.
• Management announced a strategic pivot to concentrate the portfolio on sports and entertainment, and is exploring monetizations of non?strategic assets (including strategic alternatives for the restaurant group) to redeploy capital.
• Full?year operating loss widened to $119 million, driven by non?cash impairments (notably Alight goodwill write?offs) and restaurant?related charges, which pressured results below the operating line.
• Progress at Black Knight Football Club—strong on?field performance across clubs, planned stadium expansions (phase one by 2026?27, phase two by 2027?28), and acquisition of the remaining 60% of FC Lorient for ~€60 million—supports long?term asset value upside.

Cannae Trading Down 4.0%

CNNE stock traded down $0.52 on Monday, hitting $12.68. 492,618 shares of the company were exchanged, compared to its average volume of 461,343. The stock has a market capitalization of $624.77 million, a price-to-earnings ratio of -1.64 and a beta of 1.09. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.03 and a quick ratio of 2.03. Cannae has a twelve month low of $12.65 and a twelve month high of $21.96. The business’s fifty day moving average is $15.08 and its two-hundred day moving average is $16.86.

Cannae Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a $0.15 dividend. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 4.7%. Cannae’s payout ratio is currently -7.76%.

Institutional Inflows and Outflows

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

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cannae in a research note on Friday, January 9th. Royal Bank Of Canada cut their price target on shares of Cannae from $22.00 to $19.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 12th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $20.50.

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.