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TransUnion's (TRU) Q1 Earnings Match Estimates, Rise Y/Y
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TransUnion’s (TRU - Free Report) first-quarter 2022 earnings matched the Zacks Consensus Estimate while revenues beat the same. There has not been any major price change since the earnings release on Apr 26.
Adjusted earnings of 93 cents per share increased 2.2% year over year, driven by adjusted EBITDA growth, and came above the midpoint (92.5 cents) of the guided range,. Total revenues of $921.3 million beat the consensus mark by 1.1% and increased 23.6% year over year on a reported basis. Revenues were up 32% on a constant-currency basis and 8% on an organic constant-currency basis, mainly driven by growth in U.S. Markets and International. Revenues surpassed the guided range of $906 million to $914 million.
Overall, favorable macroeconomic conditions, revival of the company’s growth-oriented portfolio from the pandemic blues, robust sales performance and ongoing innovations acted as tailwinds for TransUnion in the quarter.
TransUnion has integrated Sontiq and Neustar acquisitions successfully. Sontiq fetched around $23 million in revenues in the quarter and is expected to deliver mid-teens revenue growth in 2022, excluding integration costs. Neustar generated $150 million in revenues and is expected to deliver high single-digit organic revenue growth in 2022 and low double-digit revenue growth in 2023 and beyond.
TransUnion’s shares have declined 14.5% over the past year compared with the 17.2% decline of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $600 million were up 42% year over year on a reported basis and 7% on an organic basis. Within the segment, Financial Services revenues of $276 million climbed 5% year over year. Emerging Vertical revenues, including Neustar, Insurance and all other verticals, were $323 million, up more than 100% on a reported basis and 10% on an organic basis.
International revenues increased 15% year over year on a reported basis, and 18% on a constant-currency basis, to $191 million. Revenues from Canada increased 1% year over year on a reported as well as a constant-currency basis, to $31 million. Revenues from the United Kingdom came in at $56 million, up 12% on a reported basis and 15% on a constant-currency basis. India revenues increased 33% on a reported basis and 37% on a constant-currency basis, to $45 million. Asia-Pacific revenues came in at $17million, up 23% on a reported basis and 25% on a constant-currency basis.
Revenues from Latin America increased 13% on a reported basis and 17% on a constant-currency basis, to $27 million. Africa revenues were up 8% on a reported basis and 9% on a constant-currency basis, to 15 million.
Consumer Interactive segment revenues of $150 million, which include revenues from Sontiq, improved 15% year over year on a reported basis. Revenues declined 3% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $334.2 million, up 20.4% year over year on a reported basis and 21% on a constant-currency basis. Adjusted EBITDA margin came in at 36.3%, down 340 basis points year over year.
TransUnion had $1.3 billion in cash and cash equivalents at the end of the quarter compared with $1.8 billion at the end of the prior quarter. Long-term debt was $5.8 billion compared with $6.3 billion reported in the prior quarter. The company generated $11.2 million in cash from operating activities and CapEx was $58.6 million. TransUnion paid out $19 million in dividends in the quarter.
Outlook
For the second quarter of 2022, TransUnion expects revenues to be between $958 million and $968 million. The current Zacks Consensus Estimate for revenues is pegged at $963 million.
The company anticipates adjusted EPS to be in the range of 96 cents to 99 cents. The current Zacks Consensus Estimate for the same stands at 99 cents. Adjusted EBITDA is anticipated between $347 million and $353 million.
Transunion has raised its 2022 guidance. The company now expects revenues between $3.85 billion and $3.9 billion, compared with the previous guidance of $3.752 billion and $3.81 billion. The raised guided range is below the current Zacks Consensus Estimate of $3.98 billion.
The company anticipated adjusted EPS to be in the range of $3.84 to $3.98. The current Zacks Consensus Estimate is pegged at $3.84. Adjusted EBITDA is anticipated between $1.405 billion and $1.44 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold).
ManpowerGroup’s quarterly results beat estimates on both counts. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.
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TransUnion's (TRU) Q1 Earnings Match Estimates, Rise Y/Y
TransUnion’s (TRU - Free Report) first-quarter 2022 earnings matched the Zacks Consensus Estimate while revenues beat the same. There has not been any major price change since the earnings release on Apr 26.
Adjusted earnings of 93 cents per share increased 2.2% year over year, driven by adjusted EBITDA growth, and came above the midpoint (92.5 cents) of the guided range,. Total revenues of $921.3 million beat the consensus mark by 1.1% and increased 23.6% year over year on a reported basis. Revenues were up 32% on a constant-currency basis and 8% on an organic constant-currency basis, mainly driven by growth in U.S. Markets and International. Revenues surpassed the guided range of $906 million to $914 million.
Overall, favorable macroeconomic conditions, revival of the company’s growth-oriented portfolio from the pandemic blues, robust sales performance and ongoing innovations acted as tailwinds for TransUnion in the quarter.
TransUnion has integrated Sontiq and Neustar acquisitions successfully. Sontiq fetched around $23 million in revenues in the quarter and is expected to deliver mid-teens revenue growth in 2022, excluding integration costs. Neustar generated $150 million in revenues and is expected to deliver high single-digit organic revenue growth in 2022 and low double-digit revenue growth in 2023 and beyond.
TransUnion’s shares have declined 14.5% over the past year compared with the 17.2% decline of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $600 million were up 42% year over year on a reported basis and 7% on an organic basis. Within the segment, Financial Services revenues of $276 million climbed 5% year over year. Emerging Vertical revenues, including Neustar, Insurance and all other verticals, were $323 million, up more than 100% on a reported basis and 10% on an organic basis.
International revenues increased 15% year over year on a reported basis, and 18% on a constant-currency basis, to $191 million. Revenues from Canada increased 1% year over year on a reported as well as a constant-currency basis, to $31 million. Revenues from the United Kingdom came in at $56 million, up 12% on a reported basis and 15% on a constant-currency basis. India revenues increased 33% on a reported basis and 37% on a constant-currency basis, to $45 million. Asia-Pacific revenues came in at $17million, up 23% on a reported basis and 25% on a constant-currency basis.
Revenues from Latin America increased 13% on a reported basis and 17% on a constant-currency basis, to $27 million. Africa revenues were up 8% on a reported basis and 9% on a constant-currency basis, to 15 million.
Consumer Interactive segment revenues of $150 million, which include revenues from Sontiq, improved 15% year over year on a reported basis. Revenues declined 3% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $334.2 million, up 20.4% year over year on a reported basis and 21% on a constant-currency basis. Adjusted EBITDA margin came in at 36.3%, down 340 basis points year over year.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Balance Sheet and Cash Flow
TransUnion had $1.3 billion in cash and cash equivalents at the end of the quarter compared with $1.8 billion at the end of the prior quarter. Long-term debt was $5.8 billion compared with $6.3 billion reported in the prior quarter. The company generated $11.2 million in cash from operating activities and CapEx was $58.6 million. TransUnion paid out $19 million in dividends in the quarter.
Outlook
For the second quarter of 2022, TransUnion expects revenues to be between $958 million and $968 million. The current Zacks Consensus Estimate for revenues is pegged at $963 million.
The company anticipates adjusted EPS to be in the range of 96 cents to 99 cents. The current Zacks Consensus Estimate for the same stands at 99 cents. Adjusted EBITDA is anticipated between $347 million and $353 million.
Transunion has raised its 2022 guidance. The company now expects revenues between $3.85 billion and $3.9 billion, compared with the previous guidance of $3.752 billion and $3.81 billion. The raised guided range is below the current Zacks Consensus Estimate of $3.98 billion.
The company anticipated adjusted EPS to be in the range of $3.84 to $3.98. The current Zacks Consensus Estimate is pegged at $3.84. Adjusted EBITDA is anticipated between $1.405 billion and $1.44 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
Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.
ManpowerGroup’s quarterly results beat estimates on both counts. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.
MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.
Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.
OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.
EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.