TransUnion’s (TRU Quick QuoteTRU - Free Report) second-quarter 2022 earnings matched the Zacks Consensus Estimate while revenues missed the same.

There has not been any major price change since the earnings release on Jul 26. TransUnion’s shares have declined 37.1% over the past year compared with the 16.1% decline of the industry it belongs to.

Quarterly adjusted earnings of 98 cents per share increased 2.1% year over year, driven by adjusted EBITDA growth. Total revenues of $948.3 million missed the consensus mark by 1.3% and increased 22.5% year over year on a reported basis. Revenues were up 32% on a constant-currency basis and 5% on an organic constant-currency basis, mainly driven by growth in the U.S. Market and International.

Overall, favorable macroeconomic conditions, robust sales performance and ongoing innovations acted as tailwinds for TransUnion in the quarter.

TransUnion made significant progress in integrating Sontiq, Neustar and Verisk Financial Services acquisitions in the quarter. Sontiq fetched around $24 million in revenues and is expected to deliver mid-teens revenue growth in 2022, excluding integration costs. Neustar revenues increased mid-single-digits and are expected to deliver mid-single-digit revenue growth in 2022. Verisk Financial Services’ Argus and Commerce Signals combined fetched $22 million in revenues in the quarter.

Revenues by Segments

U.S. Market revenues of $633 million were up 44% year over year on a reported basis and 5% on an organic basis. Within the segment, Financial Services revenues of $301 million climbed 11% year over year on a reported basis and 3% on an organic basis. Emerging Vertical revenues, including Neustar, Insurance and all other verticals, were $332 million, up 98% on a reported basis and 8% on an organic basis.

International revenues increased 8% year over year on a reported basis, and 15% on a constant-currency basis, to $187 million. Revenues from Canada decreased 3% year over year on a reported basis but increased 1% on a constant-currency basis, to $33 million. Revenues from the United Kingdom came in at $50 million, down 7% on a reported basis but up 3% on a constant-currency basis. Revenues from India increased 44% on a reported basis and 51% on a constant-currency basis, to $40 million. Asia-Pacific revenues came in at $19 million, up 19% on a reported basis and 22% on a constant-currency basis.

Revenues from Latin America increased 13% on a reported basis and 14% on a constant-currency basis, to $29 million. Africa revenues were up 3% on a reported basis and 12% on a constant-currency basis, to 16 million.

Consumer Interactive segment revenues of $147 million, which include revenues from Sontiq, improved 8% year over year on a reported basis. Revenues declined 9% year over year on an organic basis.

Operating Performance

Adjusted EBITDA was $350 million, up 19% year over year on a reported basis and 20% on a constant-currency basis. Adjusted EBITDA margin came in at 36.9%, down 370 basis points year over year.

Balance Sheet and Cash Flow

TransUnion had $521.8 million in cash and cash equivalents at the end of the quarter compared with $1.3 billion at the end of the prior quarter. Long-term debt was $5.8 billion flat with the prior quarter’s figure. The company used $126.4 million of cash from operating activities and CapEx was $62.7 million. TransUnion paid out $18.2 million in dividends in the quarter.

Outlook

For the second quarter of 2022, TransUnion expects revenues to be between $935 million and $955 million. The current Zacks Consensus Estimate for revenues is pegged higher at $985.73 million.

The company anticipates adjusted EPS to be in the range of 89-95 cents. The current Zacks Consensus Estimate for the same stands higher at $1.02. Adjusted EBITDA is anticipated between $334 million and $348 million.

Transunion has reduced its 2022 guidance. The company now expects revenues between $3.748 billion and $3.798 billion compared with the previous guidance of $3.85-$3.9 billion. The current Zacks Consensus Estimate is pegged at $3.77 billion.

The company anticipated adjusted EPS to be in the range of $3.7-$3.85 compared with the prior guidance of $3.84-$3.98. The current Zacks Consensus Estimate is pegged higher at $3.92. Adjusted EBITDA is now anticipated between $1.362 billion and $1.399 billion compared with the previous guidance of $1.405-$1.44 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 Quick QuoteEFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. 

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings (IQV Quick QuoteIQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group (OMC Quick QuoteOMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.