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Black Knight Q1 Profit Beats View; Lowers FY20 Outlook - Quick Facts

Black Knight, Inc. (BKI), a provider of software, data and analytics solutions, reported Tuesday that its net earnings for the first quarter surged to $50.1 million or $0.34 per share from $26.0 million or $0.18 per share in the prior-year quarter.

The company noted that the effect of its indirect investment in Dun and Bradstreet Corp. was an increase of net earnings of $5.6 million, or $0.04 per share in the quarter, compared to a reduction of net earnings of $13.3 million, or $0.09 per share in the prior-year quarter.

Adjusted earnings for the quarter were $0.47 per share, compared to $0.44 per diluted share in the prior year quarter.

Revenues for the quarter increased 3 percent to $290.7 million from $283.1 million in the prior-year quarter. Adjusted revenues also rose 3 percent to $290.8 million from $283.2 million in the year-ago quarter.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter on revenues of $285.47 million. Analysts' estimates typically exclude special items.

For fiscal 2020, Black Knight lowered its financial outlook. The company now forecasts adjusted earnings in a range of $1.90 to $1.97 per share, while revenues and adjusted revenues are expected in a range of $1.164 billion to $1.184 billion.

Earlier, the company projected adjusted earnings in a range of $1.97 to $2.06 per share and revenues and adjusted revenues in a range of $1.190 billion to $1.214 billion.

Black Knight CEO Anthony Jabbour said, "While our first quarter results exceeded our expectations, the extraordinary effects of the broad-based response to the COVID-19 outbreak have delayed the timing of certain revenues, which is reflected in our revised outlook for full-year 2020. Specifically, we have seen lower foreclosure-related volumes in our Specialty Servicing software business due to the foreclosure moratorium and expect this to continue with forbearance plans offered as part of the CARES Act."

Separately, Black Knight said that Carrington Mortgage Services has signed an agreement to implement a comprehensive suite of Black Knight origination solutions.

Carrington Mortgage Services is a privately held non-bank lender, offering a full slate of conventional Fannie Mae, Freddie Mac, FHA, VA and USDA products through its wholesale, retail and correspondent lending channels.

The implementation includes the Empower loan origination system (LOS), as well as other Black Knight applications, to help improve operational efficiency, reduce risk and enhance the customer experience.

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