TransUnion (TRU) reported strong third-quarter results, exceeding analysts’ expectations and sending its shares soaring over 6% in after-hours trading. The credit reporting agency posted revenue of $1.085 billion, a 12% year-over-year increase, surpassing the consensus estimate of $1.06 billion. This growth was fueled by strong performance across both its U.S. and international markets.
In the U.S., TransUnion generated $848 million in revenue, representing a 12% year-over-year increase, driven by robust mortgage activity, growth in non-mortgage financial services, and a surge in insurance business. The company also benefited from large breach remediation wins. Internationally, revenue surged 11% to $242 million, with strong organic constant currency growth across India, Latin America, Asia Pacific, and Africa.
The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also climbed 11% to $394 million, resulting in an adjusted EBITDA margin of 36.3%. While this margin was slightly lower than the 36.8% achieved in the year-ago quarter, it still reflects a healthy level of profitability. Adjusted EPS (Earnings Per Share) came in at $1.04, beating the consensus estimate of $1.01.
Building on its strong third-quarter performance, TransUnion also raised its full-year 2024 outlook. The company now expects revenue to land between $4.161 billion and $4.181 billion, up from its previous guidance of $4.098 billion to $4.138 billion. This revised forecast also surpasses the analysts’ consensus estimate of $4.143 billion.
TransUnion also boosted its adjusted EPS guidance to a range of $3.87 to $3.93, up from the prior view of $3.78 to $3.90, again exceeding the consensus estimate of $3.87. Looking ahead to the fourth quarter, the company anticipates revenue between $1.014 billion and $1.034 billion, surpassing the consensus estimate of $1.017 billion. TransUnion also expects adjusted EPS to be in the range of $0.92 to $0.98, compared to the consensus estimate of $0.97.
Investors interested in gaining exposure to TransUnion can explore ETFs such as the VanEck ETF Trust VanEck Morningstar Wide Moat Growth ETF (MGRO) and the VanEck Morningstar ESG Moat ETF (MOTE), both of which include TransUnion in their holdings. The strong third-quarter results, coupled with the upgraded outlook, have solidified TransUnion’s position as a leading player in the credit reporting industry, and its shares are likely to remain in focus in the coming months.
