TransUnion shares rise as third quarter results beat estimates, guidance raised

Investing.com - TransUnion (NYSE:TRU) shares rose 2.3% on Thursday after the credit reporting company reported third-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by strong performance in its Financial Services and Emerging Verticals segments.

The company reported adjusted earnings of $1.10 per share, surpassing the analyst consensus of $1.04. Revenue reached $1.17 billion, above the $1.13 billion estimate, representing an 8% increase from the same period last year.

"In the third quarter, TransUnion delivered strong results that again exceeded financial guidance," said Chris Cartwright, President and CEO. "Revenue growth was 8%; excluding last year’s large breach remediation win, organic constant currency growth was 11%, our strongest underlying growth since 2021."

Financial Services revenue surged 19% to $438 million, while Emerging Verticals grew 7.5% to $330 million. However, Consumer Interactive revenue declined 17% to $145 million, affected by the comparison to last year’s large breach remediation win.

International revenue increased 8% to $260 million, with double-digit growth in the UK, Canada, and Africa. Adjusted EBITDA rose 8% to $425 million, maintaining a margin of 36.3%.

The company raised its full-year 2025 guidance, now expecting revenue growth of 8% to 8.5%, up from its previous forecast. For the fourth quarter, TransUnion projects revenue of $1.12-1.14 billion and adjusted earnings of $0.97-$1.02 per share.

TransUnion also accelerated its share repurchase program, buying back $160 million in shares during the third quarter and October, bringing the year-to-date total to $200 million. The company increased its share repurchase authorization to $1 billion.

"Our strong earnings growth, improving free cash flow generation and natural de-levering position us to accelerate the return of capital to shareholders," Cartwright added.

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