TransUnion reports results for the quarter ended September 30 - Earnings Summary

What happened

TransUnion reported quarterly adjusted earnings of $1.25 per share, above the $1.20 average estimate from twenty analysts and last year's $1.10. Revenue rose 12.2% to $1.31 billion, matching analyst expectations, while reported earnings per share were 81 cents.

Confirmed

Global impact / market context

Adjusted profit beating expectations suggests TransUnion's core business is generating more cash profit per share than analysts modeled, which supports its ability to fund operations and return value to investors even though reported earnings per share were lower at 81 cents.

Analyst inference

The stock rose 30.3% this quarter but is down 7.1% this year, and analysts still rate it a buy with an $87 median price target, about 8.5% above the last close of $79.62, implying expectations for further gains.

Analyst inference

What to watch

1. The mean earnings estimate from analysts fell about 1.5% in the last three months, and seven analysts cut their estimates in the last 30 days, showing shrinking profit expectations before this report. Confirmed
2. If revenue growth of 12.2% continues while adjusted profit per share stays above estimates, TransUnion could justify the buy ratings and the $87 median price target, which is 8.5% above the last close. Analyst inference
3. Investors should compare future quarterly revenue and adjusted earnings against the $1.31 billion and $1.20 estimates to judge whether the recent analyst estimate cuts were overly pessimistic. Proposed

Evidence

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