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TransUnion (TRU) Beats Q4 Earnings and Revenue Estimates
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TransUnion (TRU - Free Report) reported impressive fourth-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 80 cents per share beat the consensus mark by 1.3% and increased 6.7% year over year. Total revenues of $699 million beat the consensus mark by a slight margin and increased 2% year over year on a reported basis, 2% on a constant-currency basis and 1% on an organic constant-currency basis.
TransUnion’s shares have declined 10.6% over the past year, compared with 8% decline of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $431 million were up 4% year over year on a reported basis and 3% on an organic basis. Within the segment, Financial Services revenues of $238 million climbed 7% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $193 million, flat year over year on a reported basis and down 3% on an organic basis.
International revenues declined 4% year over year on a reported basis, and 2% on a constant-currency basis, to $160 million. Revenues from Canada increased 4% on a reported basis, and 2% on a constant currency basis, to $29 million. Revenues from the United Kingdom came in at $51 million, up 1% on a reported basis but down 1% on a constant currency basis. India revenues declined 2% on a reported but increased 2% on a constant currency basis, to $28 million. Asia-Pacific revenues came in at $16 million, down 6% on a reported basis and 8% on a constant currency basis.
Revenues from Latin America decreased 12% on a reported basis, and 1% on a constant currency basis, to $23 million. Africa revenues were down 19% on a reported basis, and 13% on a constant currency basis, to 13 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $126 million.
Operating Performance
Adjusted EBITDA was $269 million, down 2% year over year on a reported as well as constant-currency basis, and 1% on an organic constant-currency basis. Adjusted EBITDA margin came in at 38.5%, down 170 basis points.
TransUnion had $493 million in cash and cash equivalents at the end of the quarter compared with $554 million at the end of the prior quarter. Long-term debt was $3.4 billion, compared with $3.6 billion in the prior quarter. The company generated $229 million in cash from operating activities and CapEx was $82 million. It paid out $14 million in dividends in the quarter.
Outlook
For the first quarter of 2021, revenues are anticipated between $698 million and $707 million, the midpoint ($702.5) of which is above the current Zacks Consensus Estimate of $701.61 million.
Adjusted earnings are anticipated to be between 78 and 81 cents per share. The Zacks Consensus Estimate is pegged at 78 cents.
Adjusted EBITDA is anticipated between $268 million and $275 million.
For 2021, the company expects revenues between $2.817 billion and $2.877 billion, the midpoint ($2.847 billion) of which is below the current Zacks Consensus Estimate of $2.86 billion.
Adjusted earnings are anticipated between $3.16 and $3.31 per share, below the Zacks Consensus Estimate of $3.36.
Adjusted EBITDA is anticipated between $1.083 billion and $1.121 billion.
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
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TransUnion (TRU) Beats Q4 Earnings and Revenue Estimates
TransUnion (TRU - Free Report) reported impressive fourth-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 80 cents per share beat the consensus mark by 1.3% and increased 6.7% year over year. Total revenues of $699 million beat the consensus mark by a slight margin and increased 2% year over year on a reported basis, 2% on a constant-currency basis and 1% on an organic constant-currency basis.
TransUnion’s shares have declined 10.6% over the past year, compared with 8% decline of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $431 million were up 4% year over year on a reported basis and 3% on an organic basis. Within the segment, Financial Services revenues of $238 million climbed 7% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $193 million, flat year over year on a reported basis and down 3% on an organic basis.
International revenues declined 4% year over year on a reported basis, and 2% on a constant-currency basis, to $160 million. Revenues from Canada increased 4% on a reported basis, and 2% on a constant currency basis, to $29 million. Revenues from the United Kingdom came in at $51 million, up 1% on a reported basis but down 1% on a constant currency basis. India revenues declined 2% on a reported but increased 2% on a constant currency basis, to $28 million. Asia-Pacific revenues came in at $16 million, down 6% on a reported basis and 8% on a constant currency basis.
Revenues from Latin America decreased 12% on a reported basis, and 1% on a constant currency basis, to $23 million. Africa revenues were down 19% on a reported basis, and 13% on a constant currency basis, to 13 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $126 million.
Operating Performance
Adjusted EBITDA was $269 million, down 2% year over year on a reported as well as constant-currency basis, and 1% on an organic constant-currency basis. Adjusted EBITDA margin came in at 38.5%, down 170 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 $493 million in cash and cash equivalents at the end of the quarter compared with $554 million at the end of the prior quarter. Long-term debt was $3.4 billion, compared with $3.6 billion in the prior quarter. The company generated $229 million in cash from operating activities and CapEx was $82 million. It paid out $14 million in dividends in the quarter.
Outlook
For the first quarter of 2021, revenues are anticipated between $698 million and $707 million, the midpoint ($702.5) of which is above the current Zacks Consensus Estimate of $701.61 million.
Adjusted earnings are anticipated to be between 78 and 81 cents per share. The Zacks Consensus Estimate is pegged at 78 cents.
Adjusted EBITDA is anticipated between $268 million and $275 million.
For 2021, the company expects revenues between $2.817 billion and $2.877 billion, the midpoint ($2.847 billion) of which is below the current Zacks Consensus Estimate of $2.86 billion.
Adjusted earnings are anticipated between $3.16 and $3.31 per share, below the Zacks Consensus Estimate of $3.36.
Adjusted EBITDA is anticipated between $1.083 billion and $1.121 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>