We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TransUnion's (TRU) Q3 Earnings Surpass Estimates, Up Y/Y
Read MoreHide Full Article
TransUnion (TRU - Free Report) reported impressive third-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.01 per share beat the consensus mark by 8.6% and increased 24.7% year over year. Total revenues of $792 million beat the consensus mark by 2.2% and increased 14% year over year on a reported basis, 13% on a constant-currency basis and 12% on an organic constant-currency basis.
TransUnion’s shares have gained 28.3% over the past year, outperforming the 18.3% growth of the industry it belongs to.
U.S. Market revenues of $498 million were up 14% year over year on a reported basis and 12% on an organic basis. Within the segment, Financial Services revenues of $278 million climbed 11% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $221 million, up 17% on a reported basis and 14% on an organic basis.
International revenues increased 23% year over year on a reported basis, and 18% on a constant-currency basis, to $178 million. Revenues from Canada increased 10% on a reported basis, and 4% on a constant-currency basis, to $31 million. Revenues from the United Kingdom came in at $55 million, up 24% on a reported basis and 16% on a constant-currency basis. India revenues increased 44% on a reported as well as on a constant-currency basis, to $35 million. Asia-Pacific revenues came in at $16 million, up 10% on a reported basis and 11% on a constant-currency basis.
Revenues from Latin America increased 23% on a reported basis and 22% on a constant-currency basis, to $27 million. Africa revenues were up 23% on a reported basis and 8% on a constant-currency basis, to 15 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $135 million.
Operating Performance
Adjusted EBITDA was $327 million, up 21% year over year on a reported basis, 20% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 41.3%, up 250 basis points year over year.
Key Balance Sheet and Cash Flow Figures
TransUnion had $709 million in cash and cash equivalents at the end of the quarter compared with $526 million at the end of the prior quarter. Long-term debt was $3.3 billion, flat with the prior-quarter figure. The company generated $280 million in cash from operating activities and CapEx was $61 million. It paid out $18.2 million in dividends in the quarter.
Outlook
For the fourth quarter of 2021, revenues are anticipated between $764 million and $774 million, the midpoint ($769 million) of which is higher than the current Zacks Consensus Estimate of $764.62 million.
Adjusted earnings are anticipated to be between 88 and 91 cents per share. The Zacks Consensus Estimate for the same was 88 cents. Adjusted EBITDA is anticipated between $293 million and $301 million.
For 2021, the company expects revenues between $3.075 billion and $3.085 billion, higher than the Zacks Consensus Estimate of $3.06 billion.
Adjusted earnings are anticipated between $3.76 and $3.79 per share, above the Zacks Consensus Estimate of $3.69. Adjusted EBITDA is anticipated between $1.239 billion and $1.247 billion.
Currently, TransUnion carries a Zacks Rank #3 (Hold).
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
TransUnion's (TRU) Q3 Earnings Surpass Estimates, Up Y/Y
TransUnion (TRU - Free Report) reported impressive third-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.01 per share beat the consensus mark by 8.6% and increased 24.7% year over year. Total revenues of $792 million beat the consensus mark by 2.2% and increased 14% year over year on a reported basis, 13% on a constant-currency basis and 12% on an organic constant-currency basis.
TransUnion’s shares have gained 28.3% over the past year, outperforming the 18.3% growth of the industry it belongs to.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Revenues by Segments
U.S. Market revenues of $498 million were up 14% year over year on a reported basis and 12% on an organic basis. Within the segment, Financial Services revenues of $278 million climbed 11% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $221 million, up 17% on a reported basis and 14% on an organic basis.
International revenues increased 23% year over year on a reported basis, and 18% on a constant-currency basis, to $178 million. Revenues from Canada increased 10% on a reported basis, and 4% on a constant-currency basis, to $31 million. Revenues from the United Kingdom came in at $55 million, up 24% on a reported basis and 16% on a constant-currency basis. India revenues increased 44% on a reported as well as on a constant-currency basis, to $35 million. Asia-Pacific revenues came in at $16 million, up 10% on a reported basis and 11% on a constant-currency basis.
Revenues from Latin America increased 23% on a reported basis and 22% on a constant-currency basis, to $27 million. Africa revenues were up 23% on a reported basis and 8% on a constant-currency basis, to 15 million.
Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $135 million.
Operating Performance
Adjusted EBITDA was $327 million, up 21% year over year on a reported basis, 20% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 41.3%, up 250 basis points year over year.
Key Balance Sheet and Cash Flow Figures
TransUnion had $709 million in cash and cash equivalents at the end of the quarter compared with $526 million at the end of the prior quarter. Long-term debt was $3.3 billion, flat with the prior-quarter figure. The company generated $280 million in cash from operating activities and CapEx was $61 million. It paid out $18.2 million in dividends in the quarter.
Outlook
For the fourth quarter of 2021, revenues are anticipated between $764 million and $774 million, the midpoint ($769 million) of which is higher than the current Zacks Consensus Estimate of $764.62 million.
Adjusted earnings are anticipated to be between 88 and 91 cents per share. The Zacks Consensus Estimate for the same was 88 cents. Adjusted EBITDA is anticipated between $293 million and $301 million.
For 2021, the company expects revenues between $3.075 billion and $3.085 billion, higher than the Zacks Consensus Estimate of $3.06 billion.
Adjusted earnings are anticipated between $3.76 and $3.79 per share, above the Zacks Consensus Estimate of $3.69. Adjusted EBITDA is anticipated between $1.239 billion and $1.247 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.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.