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TransUnion's (TRU) Stock Gains 9.1% Post Q1 Earnings Beat
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TransUnion (TRU - Free Report) reported impressive first-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.
The stock gained 9.1% in response to the better-than-expected results.
Quarterly adjusted earnings of 80 cents per share surpassed the consensus mark and our estimate by 8.1% but decreased 14% year over year. Total revenues of $940.3 million beat the consensus mark by 2.9% and our estimates by 3.2% and increased 2.1% year over year on a reported basis. Revenues were up 4% on a constant-currency basis, mainly driven by strength in international markets.
The U.S. Markets segment’s revenues of $620 million were up 3% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services’ revenues of $321 million climbed 5% year over year on a reported basis but declined 1% on an organic basis. Emerging Vertical revenues were $300 million, up 1% on a reported basis.
The International segment’s revenues increased 3% year over year on a reported basis and 12% on a constant-currency basis to $197 million. Revenues from Canada increased 2% year over year on a reported basis and increased 9% year over year on a constant-currency basis to $31 million. Revenues from the U.K. were $47 million, down 16% on a reported basis and 8% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 32% on a constant-currency basis to $55 million. Revenues from Asia-Pacific were $21 million, up 23% on a reported basis and 25% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 11% on a constant-currency basis to $29 million. Revenues from Africa decreased 1% on a reported basis but increased 14% on a constant-currency basis to $15 million.
The Consumer Interactive segment’s revenues of $142 million declined 5% year over year on a reported basis.
Operating Performance
Adjusted EBITDA was $322 million, indicating a decline of 4% year over year on a reported basis and 1% on a constant-currency basis. The adjusted EBITDA margin came in at 34.3%, down 200 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $439 million in cash and cash equivalents at the end of the quarter, compared with $585.3 million at the end of the prior quarter. Long-term debt was $5.5 billion, compared with $5.6 billion in the previous quarter.
The company generated $77.4 million in cash from operating activities and capex was $66.5 million. It paid out $20.6 million in dividends in the quarter.
Outlook
For the second quarter of 2023, TransUnion expects revenues between $948 million and $958 million. The Zacks Consensus Estimate of $965.4 million is above the guided range.
The company anticipates adjusted EPS of 81-83 cents for the second quarter of 2023. The Zacks Consensus Estimate for the same stands higher at 89 cents. Adjusted EBITDA is anticipated between $330 million and $335 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The midpoint ($3.86 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.49-$3.62. The current Zacks Consensus Estimate is pegged higher at $3.52, lower than the midpoint ($3.56). Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.
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TransUnion's (TRU) Stock Gains 9.1% Post Q1 Earnings Beat
TransUnion (TRU - Free Report) reported impressive first-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.
The stock gained 9.1% in response to the better-than-expected results.
Quarterly adjusted earnings of 80 cents per share surpassed the consensus mark and our estimate by 8.1% but decreased 14% year over year. Total revenues of $940.3 million beat the consensus mark by 2.9% and our estimates by 3.2% and increased 2.1% year over year on a reported basis. Revenues were up 4% on a constant-currency basis, mainly driven by strength in international markets.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Revenues by Segments
The U.S. Markets segment’s revenues of $620 million were up 3% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services’ revenues of $321 million climbed 5% year over year on a reported basis but declined 1% on an organic basis. Emerging Vertical revenues were $300 million, up 1% on a reported basis.
The International segment’s revenues increased 3% year over year on a reported basis and 12% on a constant-currency basis to $197 million. Revenues from Canada increased 2% year over year on a reported basis and increased 9% year over year on a constant-currency basis to $31 million. Revenues from the U.K. were $47 million, down 16% on a reported basis and 8% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 32% on a constant-currency basis to $55 million. Revenues from Asia-Pacific were $21 million, up 23% on a reported basis and 25% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 11% on a constant-currency basis to $29 million. Revenues from Africa decreased 1% on a reported basis but increased 14% on a constant-currency basis to $15 million.
The Consumer Interactive segment’s revenues of $142 million declined 5% year over year on a reported basis.
Operating Performance
Adjusted EBITDA was $322 million, indicating a decline of 4% year over year on a reported basis and 1% on a constant-currency basis. The adjusted EBITDA margin came in at 34.3%, down 200 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $439 million in cash and cash equivalents at the end of the quarter, compared with $585.3 million at the end of the prior quarter. Long-term debt was $5.5 billion, compared with $5.6 billion in the previous quarter.
The company generated $77.4 million in cash from operating activities and capex was $66.5 million. It paid out $20.6 million in dividends in the quarter.
Outlook
For the second quarter of 2023, TransUnion expects revenues between $948 million and $958 million. The Zacks Consensus Estimate of $965.4 million is above the guided range.
The company anticipates adjusted EPS of 81-83 cents for the second quarter of 2023. The Zacks Consensus Estimate for the same stands higher at 89 cents. Adjusted EBITDA is anticipated between $330 million and $335 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The midpoint ($3.86 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.49-$3.62. The current Zacks Consensus Estimate is pegged higher at $3.52, lower than the midpoint ($3.56). Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
TRU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.