TransUnion's Strong Earnings Propel Stock Price Upward
TransUnion Reports Stellar Third-Quarter Results
TransUnion (NYSE: TRU) announced its latest quarterly earnings, demonstrating a remarkable performance that exceeded Wall Street's expectations across various financial metrics. The company reported adjusted earnings of $1.10 per share, surpassing the consensus estimate of $1.04. This marks a solid increase of 5.8% compared to $1.04 per share in the same period the previous year.
In terms of revenue, TransUnion achieved a total of $1.17 billion for the quarter, beating analyst expectations set at $1.13 billion. This figure represents a year-over-year increase of 7.8% from $1.08 billion during the same quarter last year.
Segment Performance Highlights
During the third quarter, TransUnion's U.S. Markets reported a revenue increase of 8%, reaching $913 million. This growth was driven by solid performances in both Financial Services and Emerging Verticals, which were slightly offset by a decline in Consumer Interactive revenue.
Specifically, the Financial Services sector experienced substantial growth, with revenue climbing 19% to $438 million. Meanwhile, Emerging Verticals saw a 7% increase to $330 million. In contrast, the Consumer Interactive segment fell by 17% on a reported basis and 18% organically, amounting to $145 million.
U.S. Markets also reported adjusted EBITDA growth of 10%, totaling $351 million, showcasing continued expansion in core market segments.
On the international front, revenue advanced 8% to $260 million, or 6% when considering constant-currency organic growth. This was led by the United Kingdom, which recorded a remarkable 24% reported growth to $71 million, while Africa and Canada also experienced gains of 14% and 11%, respectively.
Outlook for Future Performance
Looking ahead, TransUnion has provided an optimistic outlook for the fourth quarter, expecting adjusted EPS to be between $0.97 to $1.02, which aligns closely with the analyst consensus of $0.99. The company’s anticipated sales for the quarter range from $1.12 billion to $1.14 billion, surpassing the estimate of $1.11 billion.
For the full year, TransUnion has raised its adjusted EPS forecast to $4.19–$4.25 from a prior estimate of $4.03–$4.14, which slightly exceeds the analyst average of $4.18. Additionally, the revenue guidance has also been lifted to between $4.52 billion and $4.54 billion, ahead of the previous range of $4.43 billion–$4.47 billion, and higher than the consensus estimate of $4.48 billion.
CEO Insights
Chris Cartwright, president and CEO of TransUnion, remarked on the company's performance, stating, “In the third quarter, TransUnion delivered strong results that again exceeded financial guidance. Revenue growth was 8%; excluding last year’s substantial breach remediation win, organic constant currency growth was 11%, our strongest underlying growth since 2021.”
He further noted, “Financial Services and Emerging Verticals growth accelerated to 19% and 7.5%, respectively. International segments recorded 6% growth on an organic constant currency basis, with notable double-digit growth in the UK, Canada, and Africa.”
Price Action: As a result of these encouraging results, TRU shares saw an increase of 5.37% and were trading at $85.00 in premarket trading.
Frequently Asked Questions
What were TransUnion's earnings per share for the third quarter?
TransUnion reported adjusted earnings of $1.10 per share for the third quarter, exceeding expectations.
How much revenue did TransUnion generate in the latest quarter?
The company generated $1.17 billion in revenue during the third quarter, surpassing analyst predictions.
What segments contributed to TransUnion's revenue growth?
Financial Services and Emerging Verticals saw significant growth, contributing notably to the overall revenue increase.
What is the outlook for TransUnion for the fourth quarter?
TransUnion expects adjusted EPS between $0.97 to $1.02 and sales of $1.12 billion to $1.14 billion for the fourth quarter.
What did the CEO say about the company's performance?
CEO Chris Cartwright highlighted strong results, stating the growth was the strongest since 2021, with notable performances in several segments.
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