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TransUnion (TRU) Beats Q1 Earnings and Revenue Estimates
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TransUnion (TRU - Free Report) reported impressive first-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 91 cents per share beat the consensus mark by 13.8% and increased 24.7% year over year. Total revenues of $745.3 million beat the consensus mark by 5.8% and increased 8% year over year on a reported basis, 8% on a constant-currency basis and 7% on an organic constant-currency basis.
TransUnion’s shares have gained 28.2% over the past year, outperforming the 10.3% rally of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $468 million were up 11% year over year on a reported basis and 10% on an organic basis. Within the segment, Financial Services revenues of $263 million climbed 14% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $205 million, up 7% on a reported basis and 4% on an organic basis.
International revenues increased 5% year over year on a reported basis, and 3% on a constant-currency basis, to $166 million. Revenues from Canada increased 15% on a reported basis, and 9% on a constant-currency basis, to $30 million. Revenues from the United Kingdom came in at $50 million, up 3% on a reported basis but down 5% on a constant-currency basis. India revenues increased 10% on a reported basis and 11% on a constant-currency basis, to $34 million. Asia-Pacific revenues came in at $14 million, up 6% on a reported basis and 5% on a constant-currency basis.
Revenues from Latin America decreased 1% on a reported basis, but increased 5% on a constant-currency basis, to $24 million. Africa revenues were down 4% on a reported basis, and 5% on a constant-currency basis, to 14 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $130 million.
Operating Performance
Adjusted EBITDA was $300 million, up 14% year over year on a reported basis, 13% on a constant-currency basis, and 14% on an organic constant-currency basis. Adjusted EBITDA margin came in at 40.3%, up 100 basis points year over year.
TransUnion had $433 million in cash and cash equivalents at the end of the quarter compared with $493 million at the end of the prior quarter. Long-term debt was $3.3 billion, compared with $3.4 billion in the prior quarter. The company generated $144.8 million in cash from operating activities and CapEx was $43.2 million. It paid out $15 million in dividends in the quarter.
Outlook
For the second quarter of 2021, revenues are anticipated between $744 million and $754 million.
Adjusted earnings are anticipated to be between 89 and 92 cents per share, above the current Zacks Consensus Estimate of 80 cents.
Adjusted EBITDA is anticipated between $296 million and $303 million.
For 2021, the company expects revenues between $2.949 billion and $2.992 billion, higher than the current Zacks Consensus Estimate of $2.87 billion.
Adjusted earnings are anticipated between $3.45 and $3.58 per share, above the Zacks Consensus Estimate of $3.3.
Adjusted EBITDA is anticipated between $1.157 billion and $1.189 billion.
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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TransUnion (TRU) Beats Q1 Earnings and Revenue Estimates
TransUnion (TRU - Free Report) reported impressive first-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 91 cents per share beat the consensus mark by 13.8% and increased 24.7% year over year. Total revenues of $745.3 million beat the consensus mark by 5.8% and increased 8% year over year on a reported basis, 8% on a constant-currency basis and 7% on an organic constant-currency basis.
TransUnion’s shares have gained 28.2% over the past year, outperforming the 10.3% rally of the industry it belongs to.
Revenues by Segments
U.S. Market revenues of $468 million were up 11% year over year on a reported basis and 10% on an organic basis. Within the segment, Financial Services revenues of $263 million climbed 14% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $205 million, up 7% on a reported basis and 4% on an organic basis.
International revenues increased 5% year over year on a reported basis, and 3% on a constant-currency basis, to $166 million. Revenues from Canada increased 15% on a reported basis, and 9% on a constant-currency basis, to $30 million. Revenues from the United Kingdom came in at $50 million, up 3% on a reported basis but down 5% on a constant-currency basis. India revenues increased 10% on a reported basis and 11% on a constant-currency basis, to $34 million. Asia-Pacific revenues came in at $14 million, up 6% on a reported basis and 5% on a constant-currency basis.
Revenues from Latin America decreased 1% on a reported basis, but increased 5% on a constant-currency basis, to $24 million. Africa revenues were down 4% on a reported basis, and 5% on a constant-currency basis, to 14 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $130 million.
Operating Performance
Adjusted EBITDA was $300 million, up 14% year over year on a reported basis, 13% on a constant-currency basis, and 14% on an organic constant-currency basis. Adjusted EBITDA margin came in at 40.3%, up 100 basis points year over year.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Key Balance Sheet and Cash Flow Figures
TransUnion had $433 million in cash and cash equivalents at the end of the quarter compared with $493 million at the end of the prior quarter. Long-term debt was $3.3 billion, compared with $3.4 billion in the prior quarter. The company generated $144.8 million in cash from operating activities and CapEx was $43.2 million. It paid out $15 million in dividends in the quarter.
Outlook
For the second quarter of 2021, revenues are anticipated between $744 million and $754 million.
Adjusted earnings are anticipated to be between 89 and 92 cents per share, above the current Zacks Consensus Estimate of 80 cents.
Adjusted EBITDA is anticipated between $296 million and $303 million.
For 2021, the company expects revenues between $2.949 billion and $2.992 billion, higher than the current Zacks Consensus Estimate of $2.87 billion.
Adjusted earnings are anticipated between $3.45 and $3.58 per share, above the Zacks Consensus Estimate of $3.3.
Adjusted EBITDA is anticipated between $1.157 billion and $1.189 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>