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TransUnion Beats Q2 Estimates, Lifts 2024 Outlook

Published 07/25/2024, 06:24 PM
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CHICAGO - TransUnion (NYSE: NYSE:TRU) has reported a solid performance for the second quarter of 2024, surpassing Wall Street's expectations for both earnings and revenue.

The credit-reporting agency announced an adjusted EPS of $0.99, which was $0.02 higher than the analyst estimate of $0.97. Revenue for the quarter reached $1.04 billion, exceeding the consensus estimate of $1.02 billion and marking an 8% increase compared to the same period last year.

The company's growth was primarily driven by robust performance in the U.S. mortgage sector, International markets, and Emerging Verticals. TransUnion's President and CEO, Chris Cartwright, attributed the success to the strength in U.S. Markets and double-digit growth in several international regions, including India and Latin America.

Cartwright noted, "U.S. Markets grew due to mortgage and broad-based Emerging Verticals strength, with lending conditions largely consistent with the prior quarter."

Looking ahead, TransUnion has raised its financial guidance for the full year 2024, now expecting a revenue growth of 7 to 8 percent. For the third quarter of 2024, the company forecasts an EPS range of $0.97 to $1.02, with a midpoint of $0.995, which is slightly below the analyst consensus of $1.00. However, the projected revenue of $1.04 to $1.06 billion for the same quarter stands above the consensus estimate of $1.03 billion.

For the full year, TransUnion anticipates an EPS of $3.78 to $3.90, with the midpoint of $3.84 being above the consensus of $3.82, and revenue guidance of $4.1 to $4.14 billion, which is also above the analyst estimate of $4.09 billion.

Cartwright expressed confidence in the company's trajectory, stating, "We are raising our 2024 guidance and now expect to deliver 7 to 8 percent revenue growth, reflecting second quarter outperformance as well as a large breach remediation win which will materialize in the second half of the year."

The company's financial health was further evidenced by its proactive debt management, having voluntarily prepaid $80 million in debt and completed a refinancing that extended maturities and reduced interest expense.

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

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