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TransUnion's (TRU) Shares Barely Move After Q2 Earnings Beat
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TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
The market seems to be unimpressed by the results as the shares have barely moved since the earnings release on Jul 25.
The U.S. Markets segment’s revenues of $642 million were up 1% year over year and beat our estimate of $634.6 million. Within the segment, Financial Services’ revenues of $332 million slightly increased year over year. Emerging Vertical’s revenues were $310 million, up 3% on a reported basis.
The International segment’s revenues increased 8% year over year on a reported basis and 13% on a constant-currency basis to $202 million. The figure surpassed our estimate by 5.3%. Revenues from Canada increased 6% year over year on a reported basis and increased 11% year over year on a constant-currency basis to $35 million. Revenues from the U.K. were $49 million, down 1% on a reported basis and on a constant-currency basis.
Revenues from India increased 27% on a reported basis and 35% on a constant-currency basis to $51 million. Revenues from Asia-Pacific were $22 million, up 18% on a reported basis and 20% on a constant-currency basis.
Revenues from Latin America increased 1% on a reported basis and 5% on a constant-currency basis to $30 million. Revenues from Africa decreased 7% on a reported basis but increased 10% on a constant-currency basis to $14 million. The Consumer Interactive segment’s revenues of $144 million declined 2% year over year on a reported basis.
Operating Performance
Adjusted EBITDA was $339 million, indicating a decline of 3% year over year on a reported basis and 2% on a constant-currency basis. The adjusted EBITDA margin came in at 35%, down 190 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $442 million in cash and cash equivalents at the end of the quarter, compared with $439 million at the end of the prior quarter. Long-term debt was $5.35 billion, compared with $5.5 billion in the previous quarter.
Cash generated from operating activities during the quarter was $215.5 million. Capital expenditure was $77.1 million.
Outlook
For the third quarter of 2023, TransUnion expects revenues between $973 million and $988 million. The Zacks Consensus Estimate of $981.7 million is above the midpoint of the guided range ($980.5 million).
The company anticipates adjusted earnings per share (EPS) of 92-95 cents for the third quarter of 2023. The consensus estimate for the same stands higher at 97 cents. Adjusted EBITDA is anticipated between $361 million and $370 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 consensus mark of $3.84 billion.
The company anticipates adjusted EPS of $3.49-$3.62. The current Zacks Consensus Estimate is pegged higher than the midpoint ($3.56) at $3.58. Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
Interpublic Group of Companies’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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TransUnion's (TRU) Shares Barely Move After Q2 Earnings Beat
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
The market seems to be unimpressed by the results as the shares have barely moved since the earnings release on Jul 25.
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 $642 million were up 1% year over year and beat our estimate of $634.6 million. Within the segment, Financial Services’ revenues of $332 million slightly increased year over year. Emerging Vertical’s revenues were $310 million, up 3% on a reported basis.
The International segment’s revenues increased 8% year over year on a reported basis and 13% on a constant-currency basis to $202 million. The figure surpassed our estimate by 5.3%. Revenues from Canada increased 6% year over year on a reported basis and increased 11% year over year on a constant-currency basis to $35 million. Revenues from the U.K. were $49 million, down 1% on a reported basis and on a constant-currency basis.
Revenues from India increased 27% on a reported basis and 35% on a constant-currency basis to $51 million. Revenues from Asia-Pacific were $22 million, up 18% on a reported basis and 20% on a constant-currency basis.
Revenues from Latin America increased 1% on a reported basis and 5% on a constant-currency basis to $30 million. Revenues from Africa decreased 7% on a reported basis but increased 10% on a constant-currency basis to $14 million. The Consumer Interactive segment’s revenues of $144 million declined 2% year over year on a reported basis.
Operating Performance
Adjusted EBITDA was $339 million, indicating a decline of 3% year over year on a reported basis and 2% on a constant-currency basis. The adjusted EBITDA margin came in at 35%, down 190 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $442 million in cash and cash equivalents at the end of the quarter, compared with $439 million at the end of the prior quarter. Long-term debt was $5.35 billion, compared with $5.5 billion in the previous quarter.
Cash generated from operating activities during the quarter was $215.5 million. Capital expenditure was $77.1 million.
Outlook
For the third quarter of 2023, TransUnion expects revenues between $973 million and $988 million. The Zacks Consensus Estimate of $981.7 million is above the midpoint of the guided range ($980.5 million).
The company anticipates adjusted earnings per share (EPS) of 92-95 cents for the third quarter of 2023. The consensus estimate for the same stands higher at 97 cents. Adjusted EBITDA is anticipated between $361 million and $370 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 consensus mark of $3.84 billion.
The company anticipates adjusted EPS of $3.49-$3.62. The current Zacks Consensus Estimate is pegged higher than the midpoint ($3.56) at $3.58. 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
Interpublic Group of Companies’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax(EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup(MAN - Free Report) reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.