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TransUnion (TRU) Beats on Q1 Earnings Amid Coronavirus Crisis
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TransUnion (TRU - Free Report) reported solid first-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 73 cents per share outpaced the consensus mark by 7.4% and improved 21.7% year over year. The reported figure also exceeded the company’s guided range of 69-70 cents.
Total revenues of $688 million beat the consensus mark by 1% and increased 11% year over year on a reported basis, and 12% on a constant-currency, as well as organic constant-currency basis.
Adjusted revenues (excluding the impact of deferred revenue purchase accounting reductions and other adjustments to revenues for the company’s recently acquired entities) also came in at $688 million, up 10% year over year on a reported basis, and 11% at constant currency as well as organic constant currency. Also, the reported figure exceeded the company’s guided range of $681-$685 million.
TransUnion stated that in response to the COVID-19 pandemic, the company has shifted to a work-from-home model and is working closely with customers to bring new solutions based on their feedback and a changing market place.
The company’s president and CEO Chris Cartwright said, “As governments around the world implemented social distancing requirements, our business was negatively impacted and volumes declined sharply. Despite this, we still had sufficient momentum to deliver a good first quarter.”
TransUnion’s shares have gained 14.4%, over the past year, outperforming 10.8% growth of the industry it belongs to.
Revenues Up Across Both Segments
The U.S. Market revenues of $422 million were up 14% year over year on a reported basis as well as on an organic basis. Within the segment, Financial Services revenues of $230 million climbed 22% year over year on a reported and organic basis. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $192 million, up 7% year over year on a reported basis and 5% on an organic basis.
International revenues rose 8% year over year on a reported basis and 12% on a constant-currency basis to $158 million. Adjusted revenues also came in at $158 million, up 5% year over year on a reported basis and 9% on a constant-currency basis.
Revenues from Canada increased 15% on a reported basis and 16% on a constant currency basis to $26 million. Revenues from the U.K. came in at $49 million, up 16% on a reported basis and 17% on a constant currency basis. India revenues jumped 11% on a reported basis and 14% on a constant currency basis to $31 million. Asia-Pacific revenues came in at $13 million, up 1% on a reported basis and marginally on a constant currency basis.
Revenues from Latin America decreased 4% on a reported basis and 6% on a constant currency basis to $24 million. Africa revenues were down 5% on a reported basis and 4% on a constant currency basis to 14 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $127 million.
Operating Performance Improves
Adjusted EBITDA was $263 million, up 10% year over year on a reported basis, and 11% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 38.3%, flat year over year.
Key Balance Sheet and Cash Flow Figures
TransUnion had $306 million in cash and cash equivalents at the end of the first quarter compared with the $274 million witnessed at the end of the prior quarter. Long-term debt was $3.6 billion, flat year on year. The company generated $126 million in cash from operating activities and CapEx was $42 million. It paid out $14.7 million in dividends in the reported quarter.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat on a year-over-year basis.
Equifax Inc. (EFX - Free Report) delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.
ManpowerGroup Inc. (MAN - Free Report) recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.
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TransUnion (TRU) Beats on Q1 Earnings Amid Coronavirus Crisis
TransUnion (TRU - Free Report) reported solid first-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 73 cents per share outpaced the consensus mark by 7.4% and improved 21.7% year over year. The reported figure also exceeded the company’s guided range of 69-70 cents.
Total revenues of $688 million beat the consensus mark by 1% and increased 11% year over year on a reported basis, and 12% on a constant-currency, as well as organic constant-currency basis.
Adjusted revenues (excluding the impact of deferred revenue purchase accounting reductions and other adjustments to revenues for the company’s recently acquired entities) also came in at $688 million, up 10% year over year on a reported basis, and 11% at constant currency as well as organic constant currency. Also, the reported figure exceeded the company’s guided range of $681-$685 million.
TransUnion stated that in response to the COVID-19 pandemic, the company has shifted to a work-from-home model and is working closely with customers to bring new solutions based on their feedback and a changing market place.
The company’s president and CEO Chris Cartwright said, “As governments around the world implemented social distancing requirements, our business was negatively impacted and volumes declined sharply. Despite this, we still had sufficient momentum to deliver a good first quarter.”
TransUnion’s shares have gained 14.4%, over the past year, outperforming 10.8% growth of the industry it belongs to.
Revenues Up Across Both Segments
The U.S. Market revenues of $422 million were up 14% year over year on a reported basis as well as on an organic basis. Within the segment, Financial Services revenues of $230 million climbed 22% year over year on a reported and organic basis. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $192 million, up 7% year over year on a reported basis and 5% on an organic basis.
International revenues rose 8% year over year on a reported basis and 12% on a constant-currency basis to $158 million. Adjusted revenues also came in at $158 million, up 5% year over year on a reported basis and 9% on a constant-currency basis.
Revenues from Canada increased 15% on a reported basis and 16% on a constant currency basis to $26 million. Revenues from the U.K. came in at $49 million, up 16% on a reported basis and 17% on a constant currency basis. India revenues jumped 11% on a reported basis and 14% on a constant currency basis to $31 million. Asia-Pacific revenues came in at $13 million, up 1% on a reported basis and marginally on a constant currency basis.
Revenues from Latin America decreased 4% on a reported basis and 6% on a constant currency basis to $24 million. Africa revenues were down 5% on a reported basis and 4% on a constant currency basis to 14 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $127 million.
Operating Performance Improves
Adjusted EBITDA was $263 million, up 10% year over year on a reported basis, and 11% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 38.3%, flat year over year.
Key Balance Sheet and Cash Flow Figures
TransUnion had $306 million in cash and cash equivalents at the end of the first quarter compared with the $274 million witnessed at the end of the prior quarter. Long-term debt was $3.6 billion, flat year on year. The company generated $126 million in cash from operating activities and CapEx was $42 million. It paid out $14.7 million in dividends in the reported quarter.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat on a year-over-year basis.
Equifax Inc. (EFX - Free Report) delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.
ManpowerGroup Inc. (MAN - Free Report) recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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