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Why Is TransUnion (TRU) Up 17.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for TransUnion (TRU - Free Report) . Shares have added about 17.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TransUnion due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TransUnion Lags Q4 Earnings Estimates
TransUnion reported disappointing fourth-quarter 2021 results, with earnings and revenues missing the Zacks Consensus Estimate.
Adjusted earnings (excluding $4.45 from non-recurring items) of 81 cents per share missed the consensus mark by 10% but inched up 1.3% year over year. Total revenues of $789.8 million also missed the consensus mark and increased 13.1% year over year on a reported basis. The top line rose 21% on a constant-currency (cc) basis and 12% on an organic constant-currency basis.
Revenues by Segments
U.S. Market revenues of $481 million were up 25% year over year on a reported basis and 11% on an organic basis. Within the segment, Financial Services revenues of $268 million rose 12% year over year. Emerging Vertical revenues, including Neustar, insurance and all other verticals, were $213 million, up 44% on a reported basis and 10% on an organic basis.
International revenues increased 15% year over year on a reported basis and 15% on a constant-currency basis, to $185 million. Revenues from Canada increased 8% on a reported basis and 5% at cc to $32 million. Revenues from the U.K. came in at $58 million, up 14% on a reported basis and 12% at cc. India revenues increased 33% on a reported basis and 35% at cc to $37 million. Asia-Pacific revenues came in at $16 million, up 5% on a reported basis and 6% at cc.
Revenues from Latin America increased 13% on a reported basis and 17% at cc to $26 million. Africa revenues were up 15% on a reported basis and 13% at cc to $15 million.
Consumer Interactive segment revenues rose 14% from the prior-year quarter’s figure to $144 million.
Operating Performance
Adjusted EBITDA was $282.4 million, up 14% year over year on a reported basis (up 14% at cc and 11% on an organic constant-currency basis). Adjusted EBITDA margin came in at 35.8%, down 210 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $1,842 million in cash and cash equivalents at the end of the quarter compared with $709 million at the end of the prior quarter. Long-term debt was $6.25 billion compared with $3.4 billion reported in the prior quarter. The company generated $148 million in cash from operating activities and CapEx was $66.1 million. TransUnion paid out $18.3 million in dividends in the quarter.
Outlook
For first-quarter 2022, adjusted earnings are anticipated between 91 and 94 cents per share. Revenues are anticipated between $906 million and $914 million. Adjusted EBITDA in first-quarter 2022 is anticipated between $330 million and $337 million.
For 2022, the company expects revenues between $3.752 billion and $3.810 billion. Adjusted earnings for 2022 are expected between $3.84 and $4.00 per share. Adjusted EBITDA is anticipated between $1.386 billion and $1.424 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.45% due to these changes.
VGM Scores
Currently, TransUnion has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransUnion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is TransUnion (TRU) Up 17.7% Since Last Earnings Report?
It has been about a month since the last earnings report for TransUnion (TRU - Free Report) . Shares have added about 17.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TransUnion due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
TransUnion Lags Q4 Earnings Estimates
TransUnion reported disappointing fourth-quarter 2021 results, with earnings and revenues missing the Zacks Consensus Estimate.
Adjusted earnings (excluding $4.45 from non-recurring items) of 81 cents per share missed the consensus mark by 10% but inched up 1.3% year over year. Total revenues of $789.8 million also missed the consensus mark and increased 13.1% year over year on a reported basis. The top line rose 21% on a constant-currency (cc) basis and 12% on an organic constant-currency basis.
Revenues by Segments
U.S. Market revenues of $481 million were up 25% year over year on a reported basis and 11% on an organic basis. Within the segment, Financial Services revenues of $268 million rose 12% year over year. Emerging Vertical revenues, including Neustar, insurance and all other verticals, were $213 million, up 44% on a reported basis and 10% on an organic basis.
International revenues increased 15% year over year on a reported basis and 15% on a constant-currency basis, to $185 million. Revenues from Canada increased 8% on a reported basis and 5% at cc to $32 million. Revenues from the U.K. came in at $58 million, up 14% on a reported basis and 12% at cc. India revenues increased 33% on a reported basis and 35% at cc to $37 million. Asia-Pacific revenues came in at $16 million, up 5% on a reported basis and 6% at cc.
Revenues from Latin America increased 13% on a reported basis and 17% at cc to $26 million. Africa revenues were up 15% on a reported basis and 13% at cc to $15 million.
Consumer Interactive segment revenues rose 14% from the prior-year quarter’s figure to $144 million.
Operating Performance
Adjusted EBITDA was $282.4 million, up 14% year over year on a reported basis (up 14% at cc and 11% on an organic constant-currency basis). Adjusted EBITDA margin came in at 35.8%, down 210 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $1,842 million in cash and cash equivalents at the end of the quarter compared with $709 million at the end of the prior quarter. Long-term debt was $6.25 billion compared with $3.4 billion reported in the prior quarter. The company generated $148 million in cash from operating activities and CapEx was $66.1 million. TransUnion paid out $18.3 million in dividends in the quarter.
Outlook
For first-quarter 2022, adjusted earnings are anticipated between 91 and 94 cents per share. Revenues are anticipated between $906 million and $914 million. Adjusted EBITDA in first-quarter 2022 is anticipated between $330 million and $337 million.
For 2022, the company expects revenues between $3.752 billion and $3.810 billion. Adjusted earnings for 2022 are expected between $3.84 and $4.00 per share. Adjusted EBITDA is anticipated between $1.386 billion and $1.424 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.45% due to these changes.
VGM Scores
Currently, TransUnion has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise TransUnion has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.