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Adjusted EPS of 60 cents outpaced the consensus mark by a penny and improved 5.3% year over year.
Total revenues came in at $619 million, which beat the consensus mark by $2 million. Revenues increased 15% on a reported basis, 17% on a constant currency basis and6% at organic constant currency. This uptick was driven by strong performance across all of the company’s operating segments — U.S. Information Services (USIS), International and Consumer Interactive.
Adjusted revenues (excluding the impact of deferred revenue purchase, accounting reductions and other adjustments to revenues for the company’s recently acquired entities) came in at $623 million, up 16% year over year on a reported basis, 18% at constant currency and 6% at organic constant currency. Acquisitions of iovation, HPS, Rubixis and Callcredit drove adjusted revenues.
Shares of TransUnion have gained 15.2% in the past three months, outperforming the industry’s 13.5% rally.
Let’s delve deeper into the numbers
Operating Segments’ Revenues
The U.S. Information Services (USIS) revenues of $369 million increased 8% year over year on a reported basis and 3% on an organic basis. USIS adjusted revenues amounted to $369 million.
Within the segment, Financial Services revenues of $189 million increased 4% and 1%, respectively, on a reported and organic basis. Emerging Verticals revenues including Healthcare, Insurance and all other verticals, were $180 million, up 13% year over year on a reported basis and 4% on an organic basis.
International revenues surged 52% year over year on a reported and 61% on a constant-currency basis to $146 million. Canada, Latin America, India, Africaand Asia Pacific revenues increased year over yearon a constant currency basis.
Revenues at the Consumer Interactive segment improved 5% from the prior-year quarter number to $131 million.
Margins
Adjusted EBITDA was $239 million, up 18% year over year on a reported and 20% at constant currency. Adjusted EBITDA margin of 38.3% expanded 60 basis points (bps) year over year.
TransUnion had $200.9 million in cash and cash equivalents at the end of the first quarter compared with $187.4 million at the end of the prior quarter. Long-term debt was $4 billion, roughly flat with the prior-quarter tally. The company generated $123.8 million in cash from operating activities and spent $41.9 million on capex.
The company paid $14.4 million in dividends in the quarter.
Q2 Outlook
For the second quarter of 2019, TransUnion expects adjusted revenues between $642 million and $647 million, reflecting an improvement of 14-15% year over year.
Adjusted EBITDA is anticipated in the range of $253-$257 million, mirroring an increase of 15-17%. Adjusted EPS is expected between 64 cents and 66 cents, indicating a rise of 3-5% year over year. The Zacks Consensus Estimate for second-quarter earnings is pegged at 65 cents.
2019 View
TransUnion expects adjusted revenues between $2.60 billion and $2.62 billion, reflecting year-over-year increase of 11-12%.
Adjusted EBITDA is anticipated in the range of $1.025-$1.037 million, mirroring year-over-year increase of 12-13%. Adjusted EPS is anticipated in the band of $2.60-$2.65, indicating improvement of 4-6%. The Zacks Consensus Estimate for adjusted earnings is pegged at $2.65.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Avis Budget (CAR - Free Report) , Clean Harbors (CLH - Free Report) and IQVIA Holdings (IQV - Free Report) . All of them are slated to report on May 1.
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TransUnion's (TRU) Q1 Earnings and Revenues Beat Estimates
TransUnion (TRU - Free Report) delivered better-than-expected first-quarter 2019 results.
Adjusted EPS of 60 cents outpaced the consensus mark by a penny and improved 5.3% year over year.
Total revenues came in at $619 million, which beat the consensus mark by $2 million. Revenues increased 15% on a reported basis, 17% on a constant currency basis and6% at organic constant currency. This uptick was driven by strong performance across all of the company’s operating segments — U.S. Information Services (USIS), International and Consumer Interactive.
Adjusted revenues (excluding the impact of deferred revenue purchase, accounting reductions and other adjustments to revenues for the company’s recently acquired entities) came in at $623 million, up 16% year over year on a reported basis, 18% at constant currency and 6% at organic constant currency. Acquisitions of iovation, HPS, Rubixis and Callcredit drove adjusted revenues.
Shares of TransUnion have gained 15.2% in the past three months, outperforming the industry’s 13.5% rally.
Let’s delve deeper into the numbers
Operating Segments’ Revenues
The U.S. Information Services (USIS) revenues of $369 million increased 8% year over year on a reported basis and 3% on an organic basis. USIS adjusted revenues amounted to $369 million.
Within the segment, Financial Services revenues of $189 million increased 4% and 1%, respectively, on a reported and organic basis. Emerging Verticals revenues including Healthcare, Insurance and all other verticals, were $180 million, up 13% year over year on a reported basis and 4% on an organic basis.
International revenues surged 52% year over year on a reported and 61% on a constant-currency basis to $146 million. Canada, Latin America, India, Africaand Asia Pacific revenues increased year over yearon a constant currency basis.
Revenues at the Consumer Interactive segment improved 5% from the prior-year quarter number to $131 million.
Margins
Adjusted EBITDA was $239 million, up 18% year over year on a reported and 20% at constant currency. Adjusted EBITDA margin of 38.3% expanded 60 basis points (bps) year over year.
TransUnion Price, Consensus and EPS Surprise
TransUnion Price, Consensus and EPS Surprise | TransUnion Quote
Balance Sheet and Cash Flow
TransUnion had $200.9 million in cash and cash equivalents at the end of the first quarter compared with $187.4 million at the end of the prior quarter. Long-term debt was $4 billion, roughly flat with the prior-quarter tally. The company generated $123.8 million in cash from operating activities and spent $41.9 million on capex.
The company paid $14.4 million in dividends in the quarter.
Q2 Outlook
For the second quarter of 2019, TransUnion expects adjusted revenues between $642 million and $647 million, reflecting an improvement of 14-15% year over year.
Adjusted EBITDA is anticipated in the range of $253-$257 million, mirroring an increase of 15-17%. Adjusted EPS is expected between 64 cents and 66 cents, indicating a rise of 3-5% year over year. The Zacks Consensus Estimate for second-quarter earnings is pegged at 65 cents.
2019 View
TransUnion expects adjusted revenues between $2.60 billion and $2.62 billion, reflecting year-over-year increase of 11-12%.
Adjusted EBITDA is anticipated in the range of $1.025-$1.037 million, mirroring year-over-year increase of 12-13%. Adjusted EPS is anticipated in the band of $2.60-$2.65, indicating improvement of 4-6%. The Zacks Consensus Estimate for adjusted earnings is pegged at $2.65.
Zacks Rank & Upcoming Releases
Currently, TransUnion carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Avis Budget (CAR - Free Report) , Clean Harbors (CLH - Free Report) and IQVIA Holdings (IQV - Free Report) . All of them are slated to report on May 1.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>