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TransUnion's (TRU) Q3 Earnings and Revenues Beat Estimates
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TransUnion (TRU - Free Report) reported solid third-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 81 cents per share outpaced the consensus mark as well as the year-ago reported quarter’s figure by 6.6%. Total revenues of $696 million beat the consensus mark by 2.3% and improved 1% year over year on a reported basis, 2% on a constant-currency and 1% on an organic constant-currency basis.
TransUnion stated that in response to the COVID-19 pandemic, the company continues to follow the work-from-home model and is trying to be disciplined in managing investment priorities and cost structure. The company continues to benefit from re-openings, government stimulus and successful proactive efforts to support its associates, customers and consumers during this time of crisis .
TransUnion continues to invest in Global Operations, Global Solutions and Project Rise to boost growth and efficiency in its businesses. Recently, the company completed the acquisitions of Signal in the third quarter and TruOptik early in the fourth quarter to boost its Media Vertical.
So far this year, shares of TransUnion have declined 7.6% compared with 6.9% decline of the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segments
U.S. Market revenues of $438 million grew 4% year over year both on a reported and organic basis. Within the segment, Financial Services revenues of $249 million climbed 11% year over year on a reported and an organic basis. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $189 million, down 3% year over year on a reported and 4% on an organic basis.
International revenues declined 9% year over year on a reported basis and 7% on a constant-currency basis to $145 million.
Revenues from Canada increased 2% on a reported basis and 3% on a constant-currency basis to $24 million. Revenues from the United Kingdom came in at $44 million, down 7% on a reported basis and 11% on a constant-currency basis. India revenues declined 13% on a reported basis and 8% on a constant-currency basis to $24 million. Asia-Pacific revenues came in at $15 million, down 4% on a reported basis and 6% on a constant-currency basis. Revenues from Latin America decreased 18% on a reported basis and 5% on a constant-currency basis to $22 million. Africa revenues were down 22% on a reported basis and 10% on a constant-currency basis to $12 million.
Consumer Interactive segment revenues improved 3% from the prior-year-quarter figure to $132 million.
Operating Performance
Adjusted EBITDA was $270 million, down 4% year over year on a reported basis and 3% on constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 38.8%, down 190 basis points.
TransUnion had $554 million in cash and cash equivalents at the end of the third quarter compared with $432 million at the end of the prior quarter. Long-term debt was $3.6 billion, flat year on year.
The company generated $178.8 million in cash from operating activities and CapEx was $44.1 million. It paid out $14.3 million in dividends in the quarter.
Outlook
For the fourth quarter of 2020, revenues are anticipated between $678 million and $698 million. The Zacks Consensus Estimate of $697.98 million lies within the guided range.
Adjusted earnings are anticipated to be between 74 and 80 cents per share. The Zacks Consensus Estimate of 76 cents lies within the guided range.
Adjusted EBITDA is anticipated between $255 million and $271 million.
For 2020, the company expects revenues between $2.696 billion and $2.715 billion. The Zacks Consensus Estimate of $2.69 billion lies within the guided range.
Adjusted earnings are anticipated between $2.94 and $3.01 per share. The Zacks Consensus Estimate of $2.93 lies below the guided range.
Adjusted EBITDA is anticipated between $1.031 billion and $1.047 billion.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and improving 26.4% on a year-over-year basis. The reported figure exceeded the guided range of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
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The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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TransUnion's (TRU) Q3 Earnings and Revenues Beat Estimates
TransUnion (TRU - Free Report) reported solid third-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 81 cents per share outpaced the consensus mark as well as the year-ago reported quarter’s figure by 6.6%. Total revenues of $696 million beat the consensus mark by 2.3% and improved 1% year over year on a reported basis, 2% on a constant-currency and 1% on an organic constant-currency basis.
TransUnion stated that in response to the COVID-19 pandemic, the company continues to follow the work-from-home model and is trying to be disciplined in managing investment priorities and cost structure. The company continues to benefit from re-openings, government stimulus and successful proactive efforts to support its associates, customers and consumers during this time of crisis .
TransUnion continues to invest in Global Operations, Global Solutions and Project Rise to boost growth and efficiency in its businesses. Recently, the company completed the acquisitions of Signal in the third quarter and TruOptik early in the fourth quarter to boost its Media Vertical.
So far this year, shares of TransUnion have declined 7.6% compared with 6.9% decline of the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segments
U.S. Market revenues of $438 million grew 4% year over year both on a reported and organic basis. Within the segment, Financial Services revenues of $249 million climbed 11% year over year on a reported and an organic basis. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $189 million, down 3% year over year on a reported and 4% on an organic basis.
International revenues declined 9% year over year on a reported basis and 7% on a constant-currency basis to $145 million.
Revenues from Canada increased 2% on a reported basis and 3% on a constant-currency basis to $24 million. Revenues from the United Kingdom came in at $44 million, down 7% on a reported basis and 11% on a constant-currency basis. India revenues declined 13% on a reported basis and 8% on a constant-currency basis to $24 million. Asia-Pacific revenues came in at $15 million, down 4% on a reported basis and 6% on a constant-currency basis. Revenues from Latin America decreased 18% on a reported basis and 5% on a constant-currency basis to $22 million. Africa revenues were down 22% on a reported basis and 10% on a constant-currency basis to $12 million.
Consumer Interactive segment revenues improved 3% from the prior-year-quarter figure to $132 million.
Operating Performance
Adjusted EBITDA was $270 million, down 4% year over year on a reported basis and 3% on constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 38.8%, down 190 basis points.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Key Balance Sheet and Cash Flow Figures
TransUnion had $554 million in cash and cash equivalents at the end of the third quarter compared with $432 million at the end of the prior quarter. Long-term debt was $3.6 billion, flat year on year.
The company generated $178.8 million in cash from operating activities and CapEx was $44.1 million. It paid out $14.3 million in dividends in the quarter.
Outlook
For the fourth quarter of 2020, revenues are anticipated between $678 million and $698 million. The Zacks Consensus Estimate of $697.98 million lies within the guided range.
Adjusted earnings are anticipated to be between 74 and 80 cents per share. The Zacks Consensus Estimate of 76 cents lies within the guided range.
Adjusted EBITDA is anticipated between $255 million and $271 million.
For 2020, the company expects revenues between $2.696 billion and $2.715 billion. The Zacks Consensus Estimate of $2.69 billion lies within the guided range.
Adjusted earnings are anticipated between $2.94 and $3.01 per share. The Zacks Consensus Estimate of $2.93 lies below the guided range.
Adjusted EBITDA is anticipated between $1.031 billion and $1.047 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and improving 26.4% on a year-over-year basis. The reported figure exceeded the guided range of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and improved 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>