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TransUnion's (TRU) Q3 Earnings Surpass Estimates, Up Y/Y

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

Adjusted earnings of $1.01 per share beat the consensus mark by 8.6% and increased 24.7% year over year. Total revenues of $792 million beat the consensus mark by 2.2% and increased 14% year over year on a reported basis, 13% on a constant-currency basis and 12% on an organic constant-currency basis.

TransUnion’s shares have gained 28.3% over the past year, outperforming the 18.3% growth of the industry it belongs to.

TransUnion Price, Consensus and EPS Surprise TransUnion Price, Consensus and EPS Surprise

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

Revenues by Segments

U.S. Market revenues of $498 million were up 14% year over year on a reported basis and 12% on an organic basis. Within the segment, Financial Services revenues of $278 million climbed 11% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $221 million, up 17% on a reported basis and 14% on an organic basis.

International revenues increased 23% year over year on a reported basis, and 18% on a constant-currency basis, to $178 million. Revenues from Canada increased 10% on a reported basis, and 4% on a constant-currency basis, to $31 million. Revenues from the United Kingdom came in at $55 million, up 24% on a reported basis and 16% on a constant-currency basis. India revenues increased 44% on a reported as well as on a constant-currency basis, to $35 million. Asia-Pacific revenues came in at $16 million, up 10% on a reported basis and 11% on a constant-currency basis.

Revenues from Latin America increased 23% on a reported basis and 22% on a constant-currency basis, to $27 million. Africa revenues were up 23% on a reported basis and 8% on a constant-currency basis, to 15 million.

Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $135 million.

Operating Performance

Adjusted EBITDA was $327 million, up 21% year over year on a reported basis, 20% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 41.3%, up 250 basis points year over year.

Key Balance Sheet and Cash Flow Figures

TransUnion had $709 million in cash and cash equivalents at the end of the quarter compared with $526 million at the end of the prior quarter. Long-term debt was $3.3 billion, flat with the prior-quarter figure. The company generated $280 million in cash from operating activities and CapEx was $61 million. It paid out $18.2 million in dividends in the quarter.

Outlook

For the fourth quarter of 2021, revenues are anticipated between $764 million and $774 million, the midpoint ($769 million) of which is higher than the current Zacks Consensus Estimate of $764.62 million.

Adjusted earnings are anticipated to be between 88 and 91 cents per share. The Zacks Consensus Estimate for the same was 88 cents. Adjusted EBITDA is anticipated between $293 million and $301 million.

For 2021, the company expects revenues between $3.075 billion and $3.085 billion, higher than the Zacks Consensus Estimate of $3.06 billion.

Adjusted earnings are anticipated between $3.76 and $3.79 per share, above the Zacks Consensus Estimate of $3.69. Adjusted EBITDA is anticipated between $1.239 billion and $1.247 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.

Recent Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.

IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.

Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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