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TransUnion (TRU) Beats Q1 Earnings and Revenue Estimates

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TransUnion (TRU - Free Report) reported impressive first-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of 91 cents per share beat the consensus mark by 13.8% and increased 24.7% year over year. Total revenues of $745.3 million beat the consensus mark by 5.8% and increased 8% year over year on a reported basis, 8% on a constant-currency basis and 7% on an organic constant-currency basis.

TransUnion’s shares have gained 28.2% over the past year, outperforming the 10.3% rally of the industry it belongs to.

Revenues by Segments

U.S. Market revenues of $468 million were up 11% year over year on a reported basis and 10% on an organic basis. Within the segment, Financial Services revenues of $263 million climbed 14% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $205 million, up 7% on a reported basis and 4% on an organic basis.

International revenues increased 5% year over year on a reported basis, and 3% on a constant-currency basis, to $166 million. Revenues from Canada increased 15% on a reported basis, and 9% on a constant-currency basis, to $30 million. Revenues from the United Kingdom came in at $50 million, up 3% on a reported basis but down 5% on a constant-currency basis. India revenues increased 10% on a reported basis and 11% on a constant-currency basis, to $34 million. Asia-Pacific revenues came in at $14 million, up 6% on a reported basis and 5% on a constant-currency basis.

Revenues from Latin America decreased 1% on a reported basis, but increased 5% on a constant-currency basis, to $24 million. Africa revenues were down 4% on a reported basis, and 5% on a constant-currency basis, to 14 million.

Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $130 million.

Operating Performance

Adjusted EBITDA was $300 million, up 14% year over year on a reported basis, 13% on a constant-currency basis, and 14% on an organic constant-currency basis. Adjusted EBITDA margin came in at 40.3%, up 100 basis points year over year.

TransUnion Price, Consensus and EPS Surprise

 

TransUnion Price, Consensus and EPS Surprise

TransUnion price-consensus-eps-surprise-chart | TransUnion Quote

Key Balance Sheet and Cash Flow Figures

TransUnion had $433 million in cash and cash equivalents at the end of the quarter compared with $493 million at the end of the prior quarter. Long-term debt was $3.3 billion, compared with $3.4 billion in the prior quarter. The company generated $144.8 million in cash from operating activities and CapEx was $43.2 million. It paid out $15 million in dividends in the quarter.

Outlook

For the second quarter of 2021, revenues are anticipated between $744 million and $754 million.

Adjusted earnings are anticipated to be between 89 and 92 cents per share, above the current Zacks Consensus Estimate of 80 cents.

Adjusted EBITDA is anticipated between $296 million and $303 million.

For 2021, the company expects revenues between $2.949 billion and $2.992 billion, higher than the current Zacks Consensus Estimate of $2.87 billion.

Adjusted earnings are anticipated between $3.45 and $3.58 per share, above the Zacks Consensus Estimate of $3.3.

Adjusted EBITDA is anticipated between $1.157 billion and $1.189 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.

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

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Omnicom Group Inc. (OMC) - free report >>

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TransUnion (TRU) - free report >>

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