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Why Is TransUnion (TRU) Down 1.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for TransUnion (TRU - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TransUnion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TransUnion's Q4 Earnings and Revenues Beat Estimates
TransUnion 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.
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.
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. Adjusted earnings are anticipated to be between 78 and 81 cents per share. Adjusted EBITDA is anticipated between $268 million and $275 million.
For 2021, the company expects revenues between $2.817 billion and $2.877 billion. Adjusted earnings are anticipated between $3.16 and $3.31 per share. Adjusted EBITDA is anticipated between $1.083 billion and $1.121 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, TransUnion has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, TransUnion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is TransUnion (TRU) Down 1.5% Since Last Earnings Report?
A month has gone by since the last earnings report for TransUnion (TRU - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TransUnion due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TransUnion's Q4 Earnings and Revenues Beat Estimates
TransUnion 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.
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.
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. Adjusted earnings are anticipated to be between 78 and 81 cents per share. Adjusted EBITDA is anticipated between $268 million and $275 million.
For 2021, the company expects revenues between $2.817 billion and $2.877 billion. Adjusted earnings are anticipated between $3.16 and $3.31 per share. Adjusted EBITDA is anticipated between $1.083 billion and $1.121 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, TransUnion has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, TransUnion has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.