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TransUnion Q3 results disappoint, stock falls 7.1%

EditorRachael Rajan
Published 10/26/2023, 05:37 PM
© Reuters.
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TransUnion (NYSE:TRU) reported a disappointing third quarter on Thursday, with adjusted earnings of 91 cents per share and total revenues of $968.7 million. The results led to a 7.1% decline in the company's stock. The credit reporting agency also reduced its guidance for 2023, now expecting revenues between $3.794 billion and $3.809 billion and an adjusted EPS of $3.24-$3.28, both figures falling short of consensus estimates.

The company's segment revenues demonstrated varied performance. The U.S. Markets segment’s revenues increased by 2% year over year to $634 million, while the International segment’s revenues saw a more substantial increase of 12% year over year to $211 million. However, the Consumer Interactive segment’s revenues declined by 3% year over year to $143 million.

Geographically, Canada and India showed significant revenue increases, while Latin America's revenues rose by 8% to $31 million. Revenues from Africa were reported at $15 million, and the U.K contributed $50 million.

Adjusted EBITDA for the quarter was up by 5% year over year at $356 million, with a margin of 36.8%. TransUnion held cash and cash equivalents of $420.9 million and long-term debt of $5.25 billion at the end of the quarter. Cash generated from operating activities during the quarter was reported at $151 million, with capital expenditure at $69.6 million.

Looking ahead to the fourth quarter of 2023, TransUnion expects revenues to be between $917 million and $932 million and an adjusted EPS of 67-72 cents.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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