Earnings Preview: TransUnion

TransUnion TRU is gearing up to announce its quarterly earnings on Wednesday, 2024-10-23. Here's a quick overview of what investors should know before the release.

Analysts are estimating that TransUnion will report an earnings per share (EPS) of $1.00.

The market awaits TransUnion's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.02, leading to a 3.16% increase in the share price on the subsequent day.

Here's a look at TransUnion's past performance and the resulting price change:

Tracking TransUnion's Stock Performance

Shares of TransUnion were trading at $107.48 as of October 21. Over the last 52-week period, shares are up 130.98%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on TransUnion

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on TransUnion.

The consensus rating for TransUnion is Outperform, derived from 14 analyst ratings. An average one-year price target of $105.43 implies a potential 1.91% downside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Booz Allen Hamilton, Leidos Holdings and Jacobs Solutions, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Booz Allen Hamilton, with an average 1-year price target of $164.5, suggesting a potential 53.05% upside.
• The prevailing sentiment among analysts is an Buy trajectory for Leidos Holdings, with an average 1-year price target of $172.18, implying a potential 60.2% upside.
• Jacobs Solutions is maintaining an Outperform status according to analysts, with an average 1-year price target of $158.17, indicating a potential 47.16% upside.

Snapshot: Peer Analysis

The peer analysis summary presents essential metrics for Booz Allen Hamilton, Leidos Holdings and Jacobs Solutions, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

TransUnion ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind TransUnion

TransUnion is one of the three leading credit bureaus in the United States, providing the consumer information that is the basis for granting credit. The company also provides fraud detection, marketing, and analytical services. TransUnion operates in over 30 countries, and about a quarter of its revenue comes from international markets.

Key Indicators: TransUnion's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: TransUnion's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.52%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: TransUnion's net margin excels beyond industry benchmarks, reaching 8.17%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): TransUnion's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.07%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): TransUnion's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.77%, the company may face hurdles in achieving optimal financial returns.

Debt Management: TransUnion's debt-to-equity ratio stands notably higher than the industry average, reaching 1.29. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for TransUnion visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.