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TransUnion's (TRU) Q2 Earnings & Revenues Beat Estimates

·4 min read

TransUnion TRU reported impressive second-quarter 2021 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of 96 cents per share beat the consensus mark by 4.4% and increased 45.5% year over year. Total revenues of $774.2 million beat the consensus mark by 3.3% and increased 22% year over year on a reported basis, 20% on a constant-currency basis and 19% on an organic constant-currency basis.

TransUnion’s shares have gained 28.3% over the past year, outperforming the 18.3% rally of the industry it belongs to.

TransUnion Price

TransUnion Price
TransUnion Price

TransUnion price | TransUnion Quote

Revenues by Segments

U.S. Market revenues of $485 million were up 20% year over year on a reported basis and 18% on an organic basis. Within the segment, Financial Services revenues of $271 million climbed 22% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $214 million, up 17% on a reported basis and 13% on an organic basis.

International revenues increased 44% year over year on a reported basis, and 32% on a constant-currency basis, to $172 million. Revenues from Canada increased 41% on a reported basis, and 25% on a constant-currency basis, to $34 million. Revenues from the United Kingdom came in at $53 million, up 36% on a reported basis and 20% on a constant-currency basis. India revenues increased 58% on a reported basis and 54% on a constant-currency basis, to $28 million. Asia-Pacific revenues came in at $16 million, up 27% on a reported as well as constant-currency basis.

Revenues from Latin America increased 51% on a reported basis and 46% on a constant-currency basis, to $26 million. Africa revenues were up 69% on a reported basis and 37% on a constant-currency basis, to 15 million.

Consumer Interactive segment revenues improved 6% from the prior-year quarter figure to $137 million.

Operating Performance

Adjusted EBITDA was $318.6 million, up 31% year over year on a reported basis, 29% on a constant-currency as well as organic constant-currency basis. Adjusted EBITDA margin came in at 41.1%, up 290 basis points year over year.

Key Balance Sheet and Cash Flow Figures

TransUnion had $526.2 million in cash and cash equivalents at the end of the quarter compared with $433 million at the end of the prior quarter. Long-term debt was $3.3 billion, flat with the prior-quarter figure. The company generated $265.7 million in cash from operating activities and CapEx was $53.9 million. It paid out $18.3 million in dividends in the quarter.

Outlook

For the third quarter of 2021, revenues are anticipated between $766 million and $777 million.

Adjusted earnings are anticipated to be between 91 and 93 cents per share, above the current Zacks Consensus Estimate of 88 cents.

Adjusted EBITDA is anticipated between $301 million and $308 million.

For 2021, the company expects revenues between $3.034 billion and $3.059 billion.

Adjusted earnings are anticipated between $3.63 and $3.7 per share, above the Zacks Consensus Estimate of $3.59.

Adjusted EBITDA is anticipated between $1.207 billion and $1.225 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.

Performance of Some Other Business Services Companies

Equifax EFX reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s INFO second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.

Omnicom OMC reported second-quarter 2021 adjusted earnings of $1.46 per share that beatthe consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.


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