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.
The stock gained 3.3% since the earnings release despite the unimpressive results. TransUnion shares have declined 28% over the past year against the 2% rise of the industry it belongs to.
Quarterly adjusted earnings of 70 cents per share missed the consensus mark by 5.4% and decreased 4.1% year over year. Total revenues of $902.1 million missed the consensus mark by a slight margin but increased 14.2% year over year on a reported basis. Revenues were up 16.6% on a constant-currency basis, mainly driven by growth in the U.S. Markets and International.
Revenues by Segments
The U.S. Markets revenues of $593 million were up 23% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services revenues of $296 million climbed 6% year over year on a reported basis but declined 10% on an organic basis. Emerging Vertical revenues were $296 million, up 47% on a reported basis and 4% on an organic basis.
International revenues increased 2% year over year on a reported basis and 12% on a constant-currency basis to $188 million. Revenues from Canada were flat year over year on a reported basis and increased 8% year over year on a constant-currency basis to $32 million. Revenues from the U.K. were $48 million, down 17% on a reported basis and 5% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 33% on a constant-currency basis to $44 million. The Asia-Pacific revenues were $20 million, up 23% on a reported basis and 26% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 12% on a constant-currency basis to $28 million. Africa revenues were up 2% on a reported basis and 16% on a constant-currency basis, to $16 million.
Consumer Interactive segment revenues of $141 million declined 2% year over year on a reported basis and 13% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $321 million, up 14% year over year on a reported basis and 17% on a constant-currency basis. The adjusted EBITDA margin came in at 35.6%, down 20 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $585 million in cash and cash equivalents at the end of the quarter compared with $596.1 million at the end of the prior quarter. Long-term debt was $5.6 billion compared with $5.8 billion in the previous quarter.
The company generated $221.8 million of cash from operating activities and CapEx was $105.7 million. It paid out $20.3 million in dividends in the quarter.
For the first quarter of 2023, TransUnion expects revenues between $908 million and $917 million. The mid-point ($912.5 million) of the guided range is below the Zacks Consensus Estimate of $913.84 million.
The company anticipates adjusted EPS of 73-75 cents. The Zacks Consensus Estimate for the same stands higher at 85 cents. Adjusted EBITDA is anticipated between $310 million and $316 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The mid-point ($3.855 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.46-$3.59. The current Zacks Consensus Estimate is pegged higher at $3.7. Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
Currently, TransUnion carries a Zacks Rank #4 (Sell).
Recent Performances of Some of Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TransUnion's (TRU) Q4 Earnings Miss Estimates, Decline Y/Y
TransUnion (TRU - Free Report) reported lower-than-expected fourth-quarter 2022 results.
The stock gained 3.3% since the earnings release despite the unimpressive results. TransUnion shares have declined 28% over the past year against the 2% rise of the industry it belongs to.
Quarterly adjusted earnings of 70 cents per share missed the consensus mark by 5.4% and decreased 4.1% year over year. Total revenues of $902.1 million missed the consensus mark by a slight margin but increased 14.2% year over year on a reported basis. Revenues were up 16.6% on a constant-currency basis, mainly driven by growth in the U.S. Markets and International.
Revenues by Segments
The U.S. Markets revenues of $593 million were up 23% year over year on a reported basis but were down 4% on an organic basis. Within the segment, Financial Services revenues of $296 million climbed 6% year over year on a reported basis but declined 10% on an organic basis. Emerging Vertical revenues were $296 million, up 47% on a reported basis and 4% on an organic basis.
International revenues increased 2% year over year on a reported basis and 12% on a constant-currency basis to $188 million. Revenues from Canada were flat year over year on a reported basis and increased 8% year over year on a constant-currency basis to $32 million. Revenues from the U.K. were $48 million, down 17% on a reported basis and 5% on a constant-currency basis.
Revenues from India increased 21% on a reported basis and 33% on a constant-currency basis to $44 million. The Asia-Pacific revenues were $20 million, up 23% on a reported basis and 26% on a constant-currency basis.
Revenues from Latin America increased 5% on a reported basis and 12% on a constant-currency basis to $28 million. Africa revenues were up 2% on a reported basis and 16% on a constant-currency basis, to $16 million.
Consumer Interactive segment revenues of $141 million declined 2% year over year on a reported basis and 13% year over year on an organic basis.
Operating Performance
Adjusted EBITDA was $321 million, up 14% year over year on a reported basis and 17% on a constant-currency basis. The adjusted EBITDA margin came in at 35.6%, down 20 basis points year over year.
Balance Sheet and Cash Flow
TransUnion had $585 million in cash and cash equivalents at the end of the quarter compared with $596.1 million at the end of the prior quarter. Long-term debt was $5.6 billion compared with $5.8 billion in the previous quarter.
The company generated $221.8 million of cash from operating activities and CapEx was $105.7 million. It paid out $20.3 million in dividends in the quarter.
TransUnion Price, Consensus and EPS Surprise
TransUnion price-consensus-eps-surprise-chart | TransUnion Quote
Outlook
For the first quarter of 2023, TransUnion expects revenues between $908 million and $917 million. The mid-point ($912.5 million) of the guided range is below the Zacks Consensus Estimate of $913.84 million.
The company anticipates adjusted EPS of 73-75 cents. The Zacks Consensus Estimate for the same stands higher at 85 cents. Adjusted EBITDA is anticipated between $310 million and $316 million.
For 2023, the company expects revenues between $3.825 billion and $3.885 billion. The mid-point ($3.855 billion) of the guided range is higher than the Zacks Consensus Estimate of $3.84 billion.
The company anticipates adjusted EPS of $3.46-$3.59. The current Zacks Consensus Estimate is pegged higher at $3.7. Adjusted EBITDA is anticipated between $1.388 billion and $1.421 billion.
Currently, TransUnion carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performances of Some of Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.