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TransUnion (TRU - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.
The stock has gained 4.6% since the earnings release on Jul 25 in response to better-than-expected earnings and impressive guidance.
For 2024, TransUnion raised its guidance for revenues to $4.10-$4.14 billion from the $4.02-$4.08 billion stated previously. The mid-point ($4.12 billion) of the company’s revised guided range is lower than the Zacks Consensus Estimate of $4.13 billion. TRU raised its adjusted earnings per share (EPS) guidance to $3.78-$3.90 from the $3.69-$3.86 mentioned previously. The mid-point ($3.84) of the company’s revised guided range is lower than the Zacks Consensus Estimate for earnings of $3.86.
TRU’s quarterly adjusted earnings (adjusting 55 cents from non-recurring items) of 99 cents per share beat the consensus mark by 1% and increased 15.1% on a year-over-year basis. Total revenues of $1 billion surpassed the consensus mark by 1.6% and grew 7.5% from the year-ago quarter.
The company’s stock has gained 27.6% over the year-to-date period, outperforming the 8.1% rally of the industry it belongs to and 16% growth of the Zacks S&P 500 Composite.
The U.S. Markets segment’s revenues of $809 million rose 6% year over year and surpassed our estimate of $788.8 million. Within the segment, Financial Services’ revenues of $359 million increased 11% from the year-ago quarter. Emerging Vertical revenues were $308 million, which grew 4% year over year. Consumer Interactive revenues were $142 million, which decreased 1% from second-quarter 2023.
The International segment’s revenues increased 13% year over year on a reported basis and 14% on a constant-currency basis to $235 million and surpassed our anticipation of $233.3 million. Revenues from Canada were $38.3 million, which increased 10% year over year on a reported basis and 12% on a constant-currency basis. The metric missed our estimate of $39.7 million.
Revenues from India increased 25% on a reported basis and 27% on a constant-currency basis to $63.5 million and missed our estimate of $64.8 million. Revenues from the Asia-Pacific were $26.2 million, up 13.1% from the year-ago quarter on a reported basis and 14.1% on a constant-currency basis, marginally missing our estimate.
Revenues from Latin America increased 14.3% on a reported basis and 12.8% on a constant-currency basis to $34.5 million and beat our estimate of $33 million. Revenues from Africa increased 8.8% on a reported basis and 10.1% on a constant-currency basis to $15.8 million, surpassing our estimate of $14.4 million. Revenues from the U.K. were $56.6 million, up 4.8% year-ago quarter on a reported basis and 4% on a constant-currency basis year over year, outpacing our estimate of $55.1 million.
The Consumer Interactive segment’s revenues of $142 million decreased 1% year over year on a reported basis and missed our estimate of 143.8 million.
Operating Performance
Adjusted EBITDA was $377 million, marking year-over-year growth of 11% on both reported and constant-currency basis. The reported figure beat our estimate of 368.4 million. The adjusted EBITDA margin was 36.2%, 120 basis points higher than the year-ago figure.
Balance Sheet & Cash Flow
TransUnion had $543.2 million in cash and cash equivalents at the end of the quarter compared with $434 at the end of the preceding quarter. The long-term debt was $5.2 billion compared with the $5.3 billion reported in the previous quarter.
Cash generated from operating activities in the quarter was $295.2 million. Capital expenditure was $68.3 million.
Q3 & 2024 Outlook
For the third quarter of 2024, TransUnion raised its revenues to $1.04-$1.06 billion from the $1.02-$1.03 billion mentioned previously. The Zacks Consensus Estimate for revenues is pegged at $1.06 billion. TRU raised its guidance for the adjusted EPS to 97 cents-$1.02 from the view of 95-98 cents given during the preceding quarter’s results. The mid-point ($0.99 billion) of the company’s guided range is lower than the Zacks Consensus Estimate for earnings of $1.02. The guidance for the adjusted EBITDA was raised to $367-380 million from the view of $366-$372 million provided at the end of the previous quarter.
For 2024, the adjusted EBITDA is updated to $1.46-$1.49 billion from the $1.43-$1.49 billion mentioned previously.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
Verisk Analytics Inc. (VRSK - Free Report) reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
VRSK’s adjusted earnings (excluding 41 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 6.8% and rising 15.2.% from the year-ago quarter. Total revenues of $716.8 million missed the consensus estimate marginally while increasing 6.2% on a year-over-year basis.
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TransUnion (TRU) Stock Gains 5% Post Q2 Earnings & Revenues Beat
TransUnion (TRU - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.
The stock has gained 4.6% since the earnings release on Jul 25 in response to better-than-expected earnings and impressive guidance.
For 2024, TransUnion raised its guidance for revenues to $4.10-$4.14 billion from the $4.02-$4.08 billion stated previously. The mid-point ($4.12 billion) of the company’s revised guided range is lower than the Zacks Consensus Estimate of $4.13 billion. TRU raised its adjusted earnings per share (EPS) guidance to $3.78-$3.90 from the $3.69-$3.86 mentioned previously. The mid-point ($3.84) of the company’s revised guided range is lower than the Zacks Consensus Estimate for earnings of $3.86.
TRU’s quarterly adjusted earnings (adjusting 55 cents from non-recurring items) of 99 cents per share beat the consensus mark by 1% and increased 15.1% on a year-over-year basis. Total revenues of $1 billion surpassed the consensus mark by 1.6% and grew 7.5% from the year-ago quarter.
The company’s stock has gained 27.6% over the year-to-date period, outperforming the 8.1% rally of the industry it belongs to and 16% growth of the Zacks S&P 500 Composite.
TransUnion Price and EPS Surprise
TransUnion price-eps-surprise | TransUnion Quote
Revenues by Segments
The U.S. Markets segment’s revenues of $809 million rose 6% year over year and surpassed our estimate of $788.8 million. Within the segment, Financial Services’ revenues of $359 million increased 11% from the year-ago quarter. Emerging Vertical revenues were $308 million, which grew 4% year over year. Consumer Interactive revenues were $142 million, which decreased 1% from second-quarter 2023.
The International segment’s revenues increased 13% year over year on a reported basis and 14% on a constant-currency basis to $235 million and surpassed our anticipation of $233.3 million. Revenues from Canada were $38.3 million, which increased 10% year over year on a reported basis and 12% on a constant-currency basis. The metric missed our estimate of $39.7 million.
Revenues from India increased 25% on a reported basis and 27% on a constant-currency basis to $63.5 million and missed our estimate of $64.8 million. Revenues from the Asia-Pacific were $26.2 million, up 13.1% from the year-ago quarter on a reported basis and 14.1% on a constant-currency basis, marginally missing our estimate.
Revenues from Latin America increased 14.3% on a reported basis and 12.8% on a constant-currency basis to $34.5 million and beat our estimate of $33 million. Revenues from Africa increased 8.8% on a reported basis and 10.1% on a constant-currency basis to $15.8 million, surpassing our estimate of $14.4 million. Revenues from the U.K. were $56.6 million, up 4.8% year-ago quarter on a reported basis and 4% on a constant-currency basis year over year, outpacing our estimate of $55.1 million.
The Consumer Interactive segment’s revenues of $142 million decreased 1% year over year on a reported basis and missed our estimate of 143.8 million.
Operating Performance
Adjusted EBITDA was $377 million, marking year-over-year growth of 11% on both reported and constant-currency basis. The reported figure beat our estimate of 368.4 million. The adjusted EBITDA margin was 36.2%, 120 basis points higher than the year-ago figure.
Balance Sheet & Cash Flow
TransUnion had $543.2 million in cash and cash equivalents at the end of the quarter compared with $434 at the end of the preceding quarter. The long-term debt was $5.2 billion compared with the $5.3 billion reported in the previous quarter.
Cash generated from operating activities in the quarter was $295.2 million. Capital expenditure was $68.3 million.
Q3 & 2024 Outlook
For the third quarter of 2024, TransUnion raised its revenues to $1.04-$1.06 billion from the $1.02-$1.03 billion mentioned previously. The Zacks Consensus Estimate for revenues is pegged at $1.06 billion. TRU raised its guidance for the adjusted EPS to 97 cents-$1.02 from the view of 95-98 cents given during the preceding quarter’s results. The mid-point ($0.99 billion) of the company’s guided range is lower than the Zacks Consensus Estimate for earnings of $1.02. The guidance for the adjusted EBITDA was raised to $367-380 million from the view of $366-$372 million provided at the end of the previous quarter.
For 2024, the adjusted EBITDA is updated to $1.46-$1.49 billion from the $1.43-$1.49 billion mentioned previously.
TRU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2024 results.
FI’s adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.
Verisk Analytics Inc. (VRSK - Free Report) reported mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
VRSK’s adjusted earnings (excluding 41 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 6.8% and rising 15.2.% from the year-ago quarter. Total revenues of $716.8 million missed the consensus estimate marginally while increasing 6.2% on a year-over-year basis.