TransUnion (TRU - Free Report) reported disappointing fourth-quarter 2021 results, with earnings and revenues missing the Zacks Consensus Estimate.
The stock declined 5.9% since the earnings release on Feb 22 in response to lower-than-expected results as well as weak guidance for the first quarter of 2022 and full-year 2022.
Adjusted earnings for first-quarter 2022 are anticipated between 91 and 94 cents per share, lower than the current Zacks Consensus Estimate of 97 cents. Revenues are anticipated between $906 million and $914 million, lower than the current Zacks Consensus Estimate of $915.4 million. Adjusted earnings for 2022 are expected between $3.84 and $4.00 per share, lower than the consensus estimate of $4.12.
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.
TransUnion’s shares have inched up 1.1% in the past year against a 3.8% fall of the industry it belongs to.
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
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. The midpoint ($3.781 billion) is higher than the Zacks Consensus Estimate of $3.77 billion. Adjusted EBITDA is anticipated between $1.386 billion and $1.424 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshot
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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TransUnion (TRU - Free Report) reported disappointing fourth-quarter 2021 results, with earnings and revenues missing the Zacks Consensus Estimate.
The stock declined 5.9% since the earnings release on Feb 22 in response to lower-than-expected results as well as weak guidance for the first quarter of 2022 and full-year 2022.
Adjusted earnings for first-quarter 2022 are anticipated between 91 and 94 cents per share, lower than the current Zacks Consensus Estimate of 97 cents. Revenues are anticipated between $906 million and $914 million, lower than the current Zacks Consensus Estimate of $915.4 million. Adjusted earnings for 2022 are expected between $3.84 and $4.00 per share, lower than the consensus estimate of $4.12.
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.
TransUnion’s shares have inched up 1.1% in the past year against a 3.8% fall of the industry it belongs to.
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
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. The midpoint ($3.781 billion) is higher than the Zacks Consensus Estimate of $3.77 billion. Adjusted EBITDA is anticipated between $1.386 billion and $1.424 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sectorial Snapshot
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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