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Here's Why TransUnion Stock Gains 3% Since Reporting Q4 Earnings Beat

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TransUnion (TRU - Free Report) reported impressive fourth-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

See Zacks Earnings Calendar to stay ahead of market-making news.

The better-than-expected results impressed the market as the stock has gained 3.1% since the release of results on Feb 13, 2025.

TRU’s quarterly adjusted earnings (adjusting 63 cents from non-recurring items) of 97 cents per share surpassed the consensus mark by 1% and increased 21.3% year over year. Total revenues of $1 billion outpaced the consensus mark by a slight margin and increased 8.7% from the year-ago quarter.

The TRU stock has gained 29.5% in a year, outperforming the 23% rally of the industry it belongs to and 24.1% growth of the Zacks S&P 500 Composite.

TransUnion Price, Consensus and EPS Surprise

 

TransUnion’s Revenues by Segments

The U.S. Markets segment’s revenues of $792 million increased 8% year over year and surpassed our estimate of $775.9 million. Within the segment, Financial Services’ revenues of $356 million grew 21% from the year-ago quarter. Emerging Vertical revenues were $302 million, which increased 4% on a year-over-year basis. Consumer Interactive revenues were $134 million, which declined 11% from the fourth quarter of 2023.

The International segment’s revenues increased 11% year over year on a reported basis and 12% on a constant-currency basis to $245 million, and missed our expectation of $252.1 million. Revenues from Canada were $39 million, which grew 5% year over year on a reported basis and 8% on a constant-currency basis. The metric missed our estimate of $41.4 million.

Revenues from India gained 17% on a reported basis and 18% on a constant-currency basis to $67 million and missed our projection of $72.1 million. Revenues from the Asia-Pacific were $29 million, up 19% from the year-ago quarter on a reported basis and 20% on a constant-currency basis, surpassing our estimate of $27.2 million.

Revenues from Latin America rose 7% on a reported basis and 15% on a constant-currency basis to $34 million and missed our estimate of $35.5 million. Revenues from Africa increased 13% on a reported basis and 8% on a constant-currency basis to $18 million, missing our estimate of $17.4 million.

Revenues from the U.K. were $59 million, up 6% year over year on a reported basis and 3% on a constant-currency basis, missing our projection of $58.5 million.

TRU’s Operating Performance

Adjusted EBITDA was $378 million, marking year-over-year growth of 16% on both reported and constant-currency basis. The reported figure beat our estimate of $362.3 million. The adjusted EBITDA margin was 36%, 200 basis points higher than the year-ago figure.

Balance Sheet & Cash Flow of TRU

TransUnion had $679 million in cash and cash equivalents at the end of the quarter compared with $643.2 million at the end of the third quarter of 2024. The long-term debt was $5.1 billion, flat with the previous quarter.

Cash generated from operating activities in the quarter was $254 million. Capital expenditure was $117.1 million.

TransUnion’s Q1 & 2025 Outlook

For the first quarter of 2025, TRU expects revenues of $1.06-$1.07 billion. The Zacks Consensus Estimate for revenues is pegged at $1.07 billion. TransUnion expects adjusted earnings per share (EPS) of 96-99 cents. The company’s guided range is lower than the Zacks Consensus Estimate for earnings of $1.04 per share. The guidance for the adjusted EBITDA is $376-$384 million.

For 2025, TransUnion anticipates revenues of $4.33-$4.39 billion. The guided range is lower than the Zacks Consensus Estimate for revenues of $4.4 billion. TRU expects its adjusted EPS guidance to be $3.93-$4.08. The company’s guided range is lower than the Zacks Consensus Estimate for earnings of $4.47. Adjusted EBITDA is estimated to be $1.54-$1.59 billion.

TRU has a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Waste Connections, Inc. (WCN - Free Report) reported mixed fourth-quarter 2024 results.

WCN’s adjusted earnings (excluding $1.92 from non-recurring items) of $1.16 per share missed the Zacks Consensus Estimate by 3.3% but increased 4.5% on a year-over-year basis. Revenues of $2.3 billion beat the consensus estimate marginally and grew 11% from the year-ago quarter’s actual.

Insperity, Inc. (NSP - Free Report) posted impressive fourth-quarter 2024 results.

NSP’s adjusted earnings (excluding 27 cents from non-recurring items) of 5 cents per share outpaced the consensus estimate by more than 100% but decreased 93.3% year over year. Revenues of $1.6 billion beat the Zacks Consensus Estimate by 1% and increased 2.1% from the year-ago quarter.


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