TransUnion Stock Gains 7% Since Reporting Q1 Earnings Beat: Here's Why

TransUnion TRU reported impressive first-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.The stock gained 7.4% since the earnings release on April 24 in response to better-than-expected results and impressive top-line guidance.For 2025, TransUnion raised the revenue guidance to $4.35-$4.41 billion from the preceding quarter’s view of $4.33-$4.39 billion. The mid-point ($4.38 billion) of the guided range is lower than the Zacks Consensus Estimate for revenues of $4.40 billion.TRU’s quarterly adjusted earnings (adjusting 30 cents from non-recurring items) of $1.05 per share surpassed the consensus mark by 7.1% and increased 14.1% year over year. Total revenues of $1.1 billion outpaced the consensus mark by 2.5% and increased 7.3% from the year-ago quarter.The TRU stock has gained 11.6% in the past year compared with the 13.6% rally of the industry it belongs to and 11.4% growth of the Zacks S&P 500 Composite.TransUnion Price, Consensus and EPS Surprise  TransUnion price-consensus-eps-surprise-chart | TransUnion QuoteTransUnion’s Revenues by SegmentsThe U.S. Markets segment’s revenues of $857 million increased 9% year over year and surpassed our estimate of $829 million. Within the segment, Financial Services’ revenues of $404 million grew 15% from the year-ago quarter. Emerging Vertical revenues were $315 million, which increased 6% on a year-over-year basis. Consumer Interactive revenues were $138 million, which declined 1% from the first quarter of 2024.The International segment’s revenues increased 2% year over year on a reported basis and 6% on a constant-currency basis to $245 million, and missed our expectation of $247.7 million. Revenues from Canada were $38 million, flat year over year on a reported basis and rising 7% on a constant-currency basis. The metric beat our estimate of $37.8 million.Revenues from India declined 3% on a reported basis but gained 1% on a constant-currency basis to $69 million and missed our estimate of $73.4 million. Revenues from the Asia-Pacific were $27 million, up 7% from the year-ago quarter on a reported basis and 8% on a constant-currency basis, missing our estimate of $29.1 million.Revenues from Latin America were flat on a reported basis and grew 7% on a constant-currency basis to $33 million and met our projection. Revenues from Africa increased 12% on a reported basis and 10% on a constant-currency basis to $17 million, missing our estimate by a slight margin. Revenues from the U.K. were $59 million, up 9% year over year on a reported and constant-currency basis, surpassing our projection of $57 million.TRU’s Operating PerformanceAdjusted EBITDA was $397 million, marking year-over-year growth of 11% on a reported basis and 12% on a constant-currency basis. The reported figure beat our estimate of $383.3 million. The adjusted EBITDA margin was 36.2%, 110 basis points higher than the year-ago figure.Balance Sheet & Cash Flow of TRUTransUnion had $609.9 million in cash and cash equivalents at the end of the quarter compared with $679 million at the end of the fourth quarter of 2024. The long-term debt was $5.1 billion, flat with the previous quarter.Cash generated from operating activities in the quarter was $52.5 million. Capital expenditure was $68.4 million.TransUnion’s Q2 & 2025 OutlookFor the second quarter of 2025, TRU expects revenues of $1.07-$1.09 billion. The Zacks Consensus Estimate for revenues is pegged at $1.09 billion. TransUnion expects adjusted earnings per share (EPS) of 95-99 cents. The guided range is lower than the Zacks Consensus Estimate for EPS of $1.02. The guidance for the adjusted EBITDA is $375-$386 million.For 2025, TRU expects an adjusted EPS of $3.93-$4.08. The Zacks Consensus Estimate for earnings is pegged at $4.08 per share. Adjusted EBITDA is estimated to be $1.54-$1.59 billion.TransUnion carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotFiserv, Inc. FI reported mixed first-quarter 2025 results.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.Accenture plc ACN posted mixed second-quarter fiscal 2025 results.ACN’s earnings were $2.82 per share, missing the Zacks Consensus Estimate by a slight margin. The metric increased 1.8% from the year-ago quarter. Total revenues of $16.7 billion beat the consensus estimate by a slight margin but gained 5.4% on a year-over-year basis.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis Report TransUnion (TRU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks