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TransUnion (TRU) Beats Q4 Earnings and Revenue Estimates

TransUnion TRU reported impressive fourth-quarter 2020 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of 80 cents per share beat the consensus mark by 1.3% and increased 6.7% year over year. Total revenues of $699 million beat the consensus mark by a slight margin and increased 2% year over year on a reported basis, 2% on a constant-currency basis and 1% on an organic constant-currency basis.

TransUnion’s shares have declined 10.6% over the past year, compared with 8% decline of the industry it belongs to.

Revenues by Segments

U.S. Market revenues of $431 million were up 4% year over year on a reported basis and 3% on an organic basis. Within the segment, Financial Services revenues of $238 million climbed 7% year over year. Emerging Vertical revenues, including Healthcare, Insurance and all other verticals, were $193 million, flat year over year on a reported basis and down 3% on an organic basis.

International revenues declined 4% year over year on a reported basis, and 2% on a constant-currency basis, to $160 million. Revenues from Canada increased 4% on a reported basis, and 2% on a constant currency basis, to $29 million. Revenues from the United Kingdom came in at $51 million, up 1% on a reported basis but down 1% on a constant currency basis. India revenues declined 2% on a reported but increased 2% on a constant currency basis, to $28 million. Asia-Pacific revenues came in at $16 million, down 6% on a reported basis and 8% on a constant currency basis.

Revenues from Latin America decreased 12% on a reported basis, and 1% on a constant currency basis, to $23 million. Africa revenues were down 19% on a reported basis, and 13% on a constant currency basis, to 13 million.

Consumer Interactive segment revenues improved 3% from the prior-year quarter figure to $126 million.

Operating Performance

Adjusted EBITDA was $269 million, down 2% year over year on a reported as well as constant-currency basis, and 1% on an organic constant-currency basis. Adjusted EBITDA margin came in at 38.5%, down 170 basis points.

TransUnion Price, Consensus and EPS Surprise

 

TransUnion price-consensus-eps-surprise-chart | TransUnion Quote

Key Balance Sheet and Cash Flow Figures

TransUnion had $493 million in cash and cash equivalents at the end of the quarter compared with $554 million at the end of the prior quarter. Long-term debt was $3.4 billion, compared with $3.6 billion in the prior quarter. The company generated $229 million in cash from operating activities and CapEx was $82 million. It paid out $14 million in dividends in the quarter.

Outlook

For the first quarter of 2021, revenues are anticipated between $698 million and $707 million, the midpoint ($702.5) of which is above the current Zacks Consensus Estimate of $701.61 million.

Adjusted earnings are anticipated to be between 78 and 81 cents per share. The Zacks Consensus Estimate is pegged at 78 cents.

Adjusted EBITDA is anticipated between $268 million and $275 million.

For 2021, the company expects revenues between $2.817 billion and $2.877 billion, the midpoint ($2.847 billion) of which is below the current Zacks Consensus Estimate of $2.86 billion.

Adjusted earnings are anticipated between $3.16 and $3.31 per share, below the Zacks Consensus Estimate of $3.36.

Adjusted EBITDA is anticipated between $1.083 billion and $1.121 billion.

Currently, TransUnion carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Business Services Companies

Rollins’ ROL fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.

IHS Markit’s INFO fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.

Automatic Data Processing’s ADP second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.

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Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
 
Rollins, Inc. (ROL): Free Stock Analysis Report
 
TransUnion (TRU): Free Stock Analysis Report
 
IHS Markit Ltd. (INFO): Free Stock Analysis Report
 
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