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 (TRU) Beats Q1 Earnings & Revenues, 2017 View Up
Read MoreHide Full Article
TransUnion (TRU - Free Report) reported first-quarter 2017 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 36 cents. Robust top-line growth, along with productivity improvement initiatives, drove the company’s profits.
The company generated GAAP net income of $62.3 million or 33 cents per share compared with $12.6 million or 7 cents per share in the year-ago period. Strong growth momentum across the USIS and International segments led to the impressive bottom-line performance.
Revenues for the quarter increased 12% year over year to $455 million, comfortably beating the Zacks Consensus Estimate of $444 million. The increase in revenues was driven by growth across the USIS and International segments.
Segmental Details
Revenues at the USIS segment came in at $282 million, up 14% year over year. Decision Services revenues increased 18% from the year-ago quarter to $58 million. Marketing Services revenues were $42 million, an increase of 14% from the prior-year quarter. Online Data Services revenues grew 13% year over year to $182 million.
International segment’s revenues rose 23% year over year to $83 million. On a constant currency basis, revenues grew an impressive 16%. Revenues from developed markets increased 21% (18% on a constant currency basis) to $28 million, while that from emerging markets went up 24% (15% on a constant currency basis) to $55 million. The company saw 4% growth in revenues from acquisitions in this segment.
Revenues at the Consumer Interactive segment came in at $105 million, down 1% year over year.
Margins
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $171.6 million compared with $141.4 million in the prior-year quarter. Adjusted EBITDA margin was 37.7%, compared with 34.8% in the year-ago quarter.
The USIS segment’s adjusted operating income was $99 million, an increase of 28% from the prior-year quarter. The rise was driven by growth in the top line. The International segment’s adjusted operating income was $24 million, an increase of 43% (36% on a constant currency basis), driven by strong revenue growth and cost reduction. The Consumer Interactive segment’s adjusted operating was $50 million, an increase of 18% year over year.
As of Mar 31, 2017, TransUnion had cash and cash equivalents of $131.2 million, while long-term debt was $2,309.3 million. Cash flow from operating activities was $67.3 million for the reported quarter compared with $41.7 million in the year-earlier quarter.
Guidance Up
With double digit growth in revenues and adjusted earnings on diligent execution of operational plans, the company increased its earlier guidance for full-year 2017. Consolidated revenues for the full year are expected to be between $1.845 billion and $1.86 billion (a year-over-year increase of 8–9% on constant currency basis), up from $1.835 billion and $1.85 billion expected earlier. Adjusted EPS is expected to be between $1.74 and $1.79, compared with earlier projections in the range of $1.71 and $1.76. This represents year-over-year growth of 16–19%, up from 14–17% expected earlier.
For the second quarter, consolidated revenues are expected to be between $460 million and $465 million. Adjusted EBITDA is expected to be in the range of $176–$180 million. Adjusted EPS is expected to be between 42 cents and 43 cents, an increase of 14–17%.
TransUnion currently carries a Zacks Rank #3 (Hold). Some other better-ranked stocks in the same space include S&P Global, Inc. (SPGI - Free Report) , Ebix, Inc. and LogMeIn, Inc. . While S&P Global carries a Zacks Rank #2 (Buy), EBIX and LogMein sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
S&P Global has an impressive long-term earnings growth expectation of 12.3%.
EBIX has a healthy long-term earnings growth expectation of 10%.
LogMein has an impressive long-term earnings growth expectation of 22.5%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TransUnion (TRU) Beats Q1 Earnings & Revenues, 2017 View Up
TransUnion (TRU - Free Report) reported first-quarter 2017 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 36 cents. Robust top-line growth, along with productivity improvement initiatives, drove the company’s profits.
The company generated GAAP net income of $62.3 million or 33 cents per share compared with $12.6 million or 7 cents per share in the year-ago period. Strong growth momentum across the USIS and International segments led to the impressive bottom-line performance.
Revenues for the quarter increased 12% year over year to $455 million, comfortably beating the Zacks Consensus Estimate of $444 million. The increase in revenues was driven by growth across the USIS and International segments.
Segmental Details
Revenues at the USIS segment came in at $282 million, up 14% year over year. Decision Services revenues increased 18% from the year-ago quarter to $58 million. Marketing Services revenues were $42 million, an increase of 14% from the prior-year quarter. Online Data Services revenues grew 13% year over year to $182 million.
International segment’s revenues rose 23% year over year to $83 million. On a constant currency basis, revenues grew an impressive 16%. Revenues from developed markets increased 21% (18% on a constant currency basis) to $28 million, while that from emerging markets went up 24% (15% on a constant currency basis) to $55 million. The company saw 4% growth in revenues from acquisitions in this segment.
Revenues at the Consumer Interactive segment came in at $105 million, down 1% year over year.
Margins
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $171.6 million compared with $141.4 million in the prior-year quarter. Adjusted EBITDA margin was 37.7%, compared with 34.8% in the year-ago quarter.
The USIS segment’s adjusted operating income was $99 million, an increase of 28% from the prior-year quarter. The rise was driven by growth in the top line. The International segment’s adjusted operating income was $24 million, an increase of 43% (36% on a constant currency basis), driven by strong revenue growth and cost reduction. The Consumer Interactive segment’s adjusted operating was $50 million, an increase of 18% year over year.
TransUnion Price, Consensus and EPS Surprise
TransUnion Price, Consensus and EPS Surprise | TransUnion Quote
Balance Sheet and Cash Flow
As of Mar 31, 2017, TransUnion had cash and cash equivalents of $131.2 million, while long-term debt was $2,309.3 million. Cash flow from operating activities was $67.3 million for the reported quarter compared with $41.7 million in the year-earlier quarter.
Guidance Up
With double digit growth in revenues and adjusted earnings on diligent execution of operational plans, the company increased its earlier guidance for full-year 2017. Consolidated revenues for the full year are expected to be between $1.845 billion and $1.86 billion (a year-over-year increase of 8–9% on constant currency basis), up from $1.835 billion and $1.85 billion expected earlier. Adjusted EPS is expected to be between $1.74 and $1.79, compared with earlier projections in the range of $1.71 and $1.76. This represents year-over-year growth of 16–19%, up from 14–17% expected earlier.
For the second quarter, consolidated revenues are expected to be between $460 million and $465 million. Adjusted EBITDA is expected to be in the range of $176–$180 million. Adjusted EPS is expected to be between 42 cents and 43 cents, an increase of 14–17%.
TransUnion currently carries a Zacks Rank #3 (Hold). Some other better-ranked stocks in the same space include S&P Global, Inc. (SPGI - Free Report) , Ebix, Inc. and LogMeIn, Inc. . While S&P Global carries a Zacks Rank #2 (Buy), EBIX and LogMein sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
S&P Global has an impressive long-term earnings growth expectation of 12.3%.
EBIX has a healthy long-term earnings growth expectation of 10%.
LogMein has an impressive long-term earnings growth expectation of 22.5%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>