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TransUnion's (TRU) Shares Barely Move Since Q3 Earnings Beat
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TransUnion (TRU - Free Report) reported mixed third-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
There has not been any major price change since the earnings release on Oct 25. TransUnion’s shares have declined 50% over the past year compared with the 18.9% decline of the industry it belongs to.
Quarterly adjusted earnings of 93 cents per share beat the consensus mark by 1.1% but decreased 7.9% year over year. Total revenues of $938.2 million missed the consensus mark by a slight margin but increased 18.5% year over year on a reported basis. Revenues were up 29% on a constant-currency basis and 1% on an organic constant-currency basis, mainly driven by growth in the U.S. Market and Consumer Interactive.
Revenues by Segments
The U.S. Market revenues of $621 million were up 38% year over year on a reported basis but were down 2% on an organic basis. Within the segment, Financial Services revenues of $291 million climbed 5% year over year on a reported basis but declined 4% on an organic basis. Emerging Vertical revenues, including Neustar, Insurance and all other verticals, were $330 million, up 91% on a reported basis and 1% on an organic basis.
International revenues increased 6% year over year on a reported basis and 16% on a constant-currency basis to $189 million. Revenues from Canada increased 6% year over year on a reported basis and 10% on a constant-currency basis to $32 million. Revenues from the United Kingdom came in at $49 million, down 11% on a reported basis but up 4% on a constant-currency basis. Revenues from India increased 29% on a reported basis and 39% on a constant-currency basis to $44 million. Asia-Pacific revenues came in at $20 million, up 20% on a reported basis and 24% on a constant-currency basis.
Revenues from Latin America increased 7% on a reported basis and 13% on a constant-currency basis to $29 million. Africa revenues were up 3% on a reported basis and 18% on a constant-currency basis, to 16 million.
Consumer Interactive segment revenues of $147 million, which include revenues from Sontiq, improved 9% year over year on a reported basis. Revenues declined 9% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $341 million, up 13% year over year on a reported basis and 15% on a constant-currency basis. Adjusted EBITDA margin came in at 36.3%, down 430 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $596.1 million in cash and cash equivalents at the end of the quarter compared with $521.8 million at the end of the prior quarter. Long-term debt was $5.8 billion, the same as the prior quarter’s figure.
The company generated $190.6 million of cash from operating activities and CapEx was $71.2 million. It paid out $20.3 million in dividends in the quarter.
For the fourth quarter of 2022, TransUnion expects revenues to be between $896 million and $916 million. The midpoint ($906 million) of the guided range is slightly below the Zacks Consensus Estimate of $906.42 million.
The company anticipates adjusted EPS to be in the range of 80-86 cents. The Zacks Consensus Estimate for the same stands higher at 91 cents. Adjusted EBITDA is anticipated to be between $318 million and $333 million.
Transunion has reduced its 2022 guidance. The company now expects revenues between $3.704 billion and $3.724 billion compared with the previous guidance of $3.748-$3.798 billion. The current Zacks Consensus Estimate is pegged at $3.72 billion.
The company anticipates adjusted EPS to be in the range of $3.63-$3.69 compared with the prior guidance of $3.7-$3.86. The current Zacks Consensus Estimate is pegged higher at $3.74. Adjusted EBITDA is now anticipated between $1.343 billion and $1.358 billion compared with the previous guidance of $1.362-$1.399 billion.
Currently, TransUnion carries a Zacks Rank #4 (Sell).
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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TransUnion's (TRU) Shares Barely Move Since Q3 Earnings Beat
TransUnion (TRU - Free Report) reported mixed third-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
There has not been any major price change since the earnings release on Oct 25. TransUnion’s shares have declined 50% over the past year compared with the 18.9% decline of the industry it belongs to.
Quarterly adjusted earnings of 93 cents per share beat the consensus mark by 1.1% but decreased 7.9% year over year. Total revenues of $938.2 million missed the consensus mark by a slight margin but increased 18.5% year over year on a reported basis. Revenues were up 29% on a constant-currency basis and 1% on an organic constant-currency basis, mainly driven by growth in the U.S. Market and Consumer Interactive.
Revenues by Segments
The U.S. Market revenues of $621 million were up 38% year over year on a reported basis but were down 2% on an organic basis. Within the segment, Financial Services revenues of $291 million climbed 5% year over year on a reported basis but declined 4% on an organic basis. Emerging Vertical revenues, including Neustar, Insurance and all other verticals, were $330 million, up 91% on a reported basis and 1% on an organic basis.
International revenues increased 6% year over year on a reported basis and 16% on a constant-currency basis to $189 million. Revenues from Canada increased 6% year over year on a reported basis and 10% on a constant-currency basis to $32 million. Revenues from the United Kingdom came in at $49 million, down 11% on a reported basis but up 4% on a constant-currency basis. Revenues from India increased 29% on a reported basis and 39% on a constant-currency basis to $44 million. Asia-Pacific revenues came in at $20 million, up 20% on a reported basis and 24% on a constant-currency basis.
Revenues from Latin America increased 7% on a reported basis and 13% on a constant-currency basis to $29 million. Africa revenues were up 3% on a reported basis and 18% on a constant-currency basis, to 16 million.
Consumer Interactive segment revenues of $147 million, which include revenues from Sontiq, improved 9% year over year on a reported basis. Revenues declined 9% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $341 million, up 13% year over year on a reported basis and 15% on a constant-currency basis. Adjusted EBITDA margin came in at 36.3%, down 430 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $596.1 million in cash and cash equivalents at the end of the quarter compared with $521.8 million at the end of the prior quarter. Long-term debt was $5.8 billion, the same as the prior quarter’s figure.
The company generated $190.6 million of cash from operating activities and CapEx was $71.2 million. It paid out $20.3 million in dividends in the quarter.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Outlook
For the fourth quarter of 2022, TransUnion expects revenues to be between $896 million and $916 million. The midpoint ($906 million) of the guided range is slightly below the Zacks Consensus Estimate of $906.42 million.
The company anticipates adjusted EPS to be in the range of 80-86 cents. The Zacks Consensus Estimate for the same stands higher at 91 cents. Adjusted EBITDA is anticipated to be between $318 million and $333 million.
Transunion has reduced its 2022 guidance. The company now expects revenues between $3.704 billion and $3.724 billion compared with the previous guidance of $3.748-$3.798 billion. The current Zacks Consensus Estimate is pegged at $3.72 billion.
The company anticipates adjusted EPS to be in the range of $3.63-$3.69 compared with the prior guidance of $3.7-$3.86. The current Zacks Consensus Estimate is pegged higher at $3.74. Adjusted EBITDA is now anticipated between $1.343 billion and $1.358 billion compared with the previous guidance of $1.362-$1.399 billion.
Currently, TransUnion carries a Zacks Rank #4 (Sell).
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 stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.