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The stock gained 3.3% since the earnings release despite the unimpressive results. TransUnion shares have declined 28% over the past year against the 2% rise of the industry it belongs to.
Quarterly adjusted earnings of 70 cents per share missed the consensus mark by 5.4% and decreased 4.1% year over year. Total revenues of $902.1 million missed the consensus mark by a slight margin but increased 14.2% year over year on a reported basis. Revenues were up 16.6% on a constant-currency basis, mainly driven by growth in the U.S. Markets and International.
Revenues by Segments
The U.S. Markets revenues of $593 million were up 23% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services revenues of $296 million climbed 6% year over year on a reported basis but declined 10% on an organic basis. Emerging Vertical revenues were $296 million, up 47% on a reported basis and 4% on an organic basis.
International revenues increased 2% year over year on a reported basis and 12% on a constant-currency basis to $188 million. Revenues from Canada were flat year over year on a reported basis and increased 8% year over year on a constant-currency basis to $32 million. Revenues from the U.K. were $48 million, down 17% on a reported basis and 5% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 33% on a constant-currency basis to $44 million. The Asia-Pacific revenues were $20 million, up 23% on a reported basis and 26% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 12% on a constant-currency basis to $28 million. Africa revenues were up 2% on a reported basis and 16% on a constant-currency basis, to $16 million.
Consumer Interactive segment revenues of $141 million declined 2% year over year on a reported basis and 13% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $321 million, up 14% year over year on a reported basis and 17% on a constant-currency basis. The adjusted EBITDA margin came in at 35.6%, down 20 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $585 million in cash and cash equivalents at the end of the quarter compared with $596.1 million at the end of the prior quarter. Long-term debt was $5.6 billion compared with $5.8 billion in the previous quarter.
The company generated $221.8 million of cash from operating activities and CapEx was $105.7 million. It paid out $20.3 million in dividends in the quarter.
For the first quarter of 2023, TransUnion expects revenues between $908 million and $917 million. The mid-point ($912.5 million) of the guided range is below the Zacks Consensus Estimate of $913.84 million.
The company anticipates adjusted EPS of 73-75 cents. The Zacks Consensus Estimate for the same stands higher at 85 cents. Adjusted EBITDA is anticipated between $310 million and $316 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The mid-point ($3.855 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.46-$3.59. The current Zacks Consensus Estimate is pegged higher at $3.7. Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
Currently, TransUnion carries a Zacks Rank #4 (Sell).
Recent Performances of Some of Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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TransUnion's (TRU) Q4 Earnings Miss Estimates, Decline Y/Y
TransUnion (TRU - Free Report) reported lower-than-expected fourth-quarter 2022 results.
The stock gained 3.3% since the earnings release despite the unimpressive results. TransUnion shares have declined 28% over the past year against the 2% rise of the industry it belongs to.
Quarterly adjusted earnings of 70 cents per share missed the consensus mark by 5.4% and decreased 4.1% year over year. Total revenues of $902.1 million missed the consensus mark by a slight margin but increased 14.2% year over year on a reported basis. Revenues were up 16.6% on a constant-currency basis, mainly driven by growth in the U.S. Markets and International.
Revenues by Segments
The U.S. Markets revenues of $593 million were up 23% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services revenues of $296 million climbed 6% year over year on a reported basis but declined 10% on an organic basis. Emerging Vertical revenues were $296 million, up 47% on a reported basis and 4% on an organic basis.
International revenues increased 2% year over year on a reported basis and 12% on a constant-currency basis to $188 million. Revenues from Canada were flat year over year on a reported basis and increased 8% year over year on a constant-currency basis to $32 million. Revenues from the U.K. were $48 million, down 17% on a reported basis and 5% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 33% on a constant-currency basis to $44 million. The Asia-Pacific revenues were $20 million, up 23% on a reported basis and 26% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 12% on a constant-currency basis to $28 million. Africa revenues were up 2% on a reported basis and 16% on a constant-currency basis, to $16 million.
Consumer Interactive segment revenues of $141 million declined 2% year over year on a reported basis and 13% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $321 million, up 14% year over year on a reported basis and 17% on a constant-currency basis. The adjusted EBITDA margin came in at 35.6%, down 20 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $585 million in cash and cash equivalents at the end of the quarter compared with $596.1 million at the end of the prior quarter. Long-term debt was $5.6 billion compared with $5.8 billion in the previous quarter.
The company generated $221.8 million of cash from operating activities and CapEx was $105.7 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 first quarter of 2023, TransUnion expects revenues between $908 million and $917 million. The mid-point ($912.5 million) of the guided range is below the Zacks Consensus Estimate of $913.84 million.
The company anticipates adjusted EPS of 73-75 cents. The Zacks Consensus Estimate for the same stands higher at 85 cents. Adjusted EBITDA is anticipated between $310 million and $316 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The mid-point ($3.855 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.46-$3.59. The current Zacks Consensus Estimate is pegged higher at $3.7. Adjusted EBITDA is anticipated between $1.388 billion and $1.421 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 Performances of Some of Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.