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’s Revenues by Segments

The 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 Performance

Adjusted 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 TRU

TransUnion 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 Outlook

For 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 Snapshot

Fiserv, 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.

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