We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Revenue Growth, Tax Cut to Aid TransUnion's (TRU) Q1 Earnings
Read MoreHide Full Article
TransUnion (TRU - Free Report) is slated to release first-quarter 2018 results on Apr 20, before the opening bell.
While strong performance across all operating segments is likely to drive the company’s topline, the bottom line is expected to benefit from lower U.S. tax rates.
We observe that shares of TransUnion have surged a massive 56.4% in the past year, significantly outperforming the 26.8% rally of the industry it belongs to.
Here are the expectations in detail.
Segmental Revenues on Growth Track
TransUnion’s operates through three segments — U.S. Information Services (USIS), International and Consumer Interactive. On a year-over-year basis, each of the segments is expected to perform well in the to-be-reported quarter.
U.S. Information Services (USIS) revenues are expected to increase year over year driven by strength across all three platforms — Online Data Services, Marketing Services and Decision Services.
The Zacks Consensus Estimate for Online Data Services revenues is pegged at $199 million, reflecting growth of 9.3% from the year-ago quarter’s actual figure. The consensus estimate for Marketing Services and Decision Services revenues stands at $47.35 million and $67 million, reflecting a year-over-year increase of 12.7% and 15.5%, respectively.
For the USIS segment as a whole, the consensus mark is estimated at $314 million, depicting a year-over-year improvement of 11.3%. In the fourth quarter, this segment recorded 16% growth year over year.
International revenues are likely to improve driven by top-line growth in both developed and emerging markets. The Zacks Consensus Estimate for revenues at this segment is pegged at $94 million, reflecting an increase of 13.3%.
The consensus estimate for developed market revenues is pegged at $31.4 million, mirroring year-over-year growth of 12.1%. The same for emerging market revenues stands at $63 million, reflecting increase of 14.5% year over year.
Revenues at the international segment were up 12% year over year in the fourth quarter.
Consumer Interactive revenues are expected to be driven by both direct and indirect channels. The Zacks Consensus Estimate of $109 million for revenues at this segment, depicts year-over-year growth of 3.8%. In the fourth quarter, the segment reported 18% growth year over year.
Strength across all segments is expected to contribute significantly toward improved TransUnion’s total revenues year over year. The Zacks Consensus Estimate for the same is pegged at $507 million, mirroring an increase of 11.4%.
The new tax (Tax Cuts and Jobs Act, effective from December 2017), which reduced corporate tax rates significantly from 35% to 21%, is expected to benefit TransUnion’s earnings in the to-be-reported quarter. The company expects first-quarter EPS to benefit roughly by 5 cents from the tax cut. Notably, the consensus estimate for the same is pegged at 51 cents, reflecting year-over-year growth of 21.4%.
In fourth quarter 2017, adjusted EPS increased 13% from the year-ago quarter.
What Does the Zacks Model Predict
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TransUnionhas a Zacks Rank #3 and an Earnings ESP of +0.00%, a combination that suggests that the company is unlikely to beat estimates.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat in first-quarter 2018:
FLEETCOR Technologies, Inc. has an Earnings ESP of +0.37% and a Zacks Rank of 2. The company is expected to report its quarterly numbers on May 7.
ManpowerGroup (MAN - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. The company is slated to report quarterly results on Apr 20.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Revenue Growth, Tax Cut to Aid TransUnion's (TRU) Q1 Earnings
TransUnion (TRU - Free Report) is slated to release first-quarter 2018 results on Apr 20, before the opening bell.
While strong performance across all operating segments is likely to drive the company’s topline, the bottom line is expected to benefit from lower U.S. tax rates.
We observe that shares of TransUnion have surged a massive 56.4% in the past year, significantly outperforming the 26.8% rally of the industry it belongs to.
Here are the expectations in detail.
Segmental Revenues on Growth Track
TransUnion’s operates through three segments — U.S. Information Services (USIS), International and Consumer Interactive. On a year-over-year basis, each of the segments is expected to perform well in the to-be-reported quarter.
U.S. Information Services (USIS) revenues are expected to increase year over year driven by strength across all three platforms — Online Data Services, Marketing Services and Decision Services.
The Zacks Consensus Estimate for Online Data Services revenues is pegged at $199 million, reflecting growth of 9.3% from the year-ago quarter’s actual figure. The consensus estimate for Marketing Services and Decision Services revenues stands at $47.35 million and $67 million, reflecting a year-over-year increase of 12.7% and 15.5%, respectively.
For the USIS segment as a whole, the consensus mark is estimated at $314 million, depicting a year-over-year improvement of 11.3%. In the fourth quarter, this segment recorded 16% growth year over year.
International revenues are likely to improve driven by top-line growth in both developed and emerging markets. The Zacks Consensus Estimate for revenues at this segment is pegged at $94 million, reflecting an increase of 13.3%.
The consensus estimate for developed market revenues is pegged at $31.4 million, mirroring year-over-year growth of 12.1%. The same for emerging market revenues stands at $63 million, reflecting increase of 14.5% year over year.
Revenues at the international segment were up 12% year over year in the fourth quarter.
Consumer Interactive revenues are expected to be driven by both direct and indirect channels. The Zacks Consensus Estimate of $109 million for revenues at this segment, depicts year-over-year growth of 3.8%. In the fourth quarter, the segment reported 18% growth year over year.
Strength across all segments is expected to contribute significantly toward improved TransUnion’s total revenues year over year. The Zacks Consensus Estimate for the same is pegged at $507 million, mirroring an increase of 11.4%.
TransUnion Revenue (TTM)
TransUnion Revenue (TTM) | TransUnion Quote
Tax Cut to Benefit the Bottom Line
The new tax (Tax Cuts and Jobs Act, effective from December 2017), which reduced corporate tax rates significantly from 35% to 21%, is expected to benefit TransUnion’s earnings in the to-be-reported quarter. The company expects first-quarter EPS to benefit roughly by 5 cents from the tax cut. Notably, the consensus estimate for the same is pegged at 51 cents, reflecting year-over-year growth of 21.4%.
In fourth quarter 2017, adjusted EPS increased 13% from the year-ago quarter.
What Does the Zacks Model Predict
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TransUnionhas a Zacks Rank #3 and an Earnings ESP of +0.00%, a combination that suggests that the company is unlikely to beat estimates.
Key Picks
Here are a few stocks from the broader Business Services sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat in first-quarter 2018:
Mastercard (MA - Free Report) has an Earnings ESP of +2.39% and a Zacks Rank #2. The company is slated to report quarterly numbers on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
FLEETCOR Technologies, Inc. has an Earnings ESP of +0.37% and a Zacks Rank of 2. The company is expected to report its quarterly numbers on May 7.
ManpowerGroup (MAN - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #3. The company is slated to report quarterly results on Apr 20.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>