TransUnion Off to a Strong Start in 2022 Despite Mortgage Headwinds and Economic Uncertainty

In our view, wide-moat-rated TransUnion reported solid first-quarter results. Revenue grew 8% organically to $921 million and beat the FactSet consensus estimate by $10 million. Adjusted EBITDA of $334 million and adjusted EPS of $0.93 was virtually in line with consensus. TransUnion slightly increased its revenue guidance and slightly reduced its margin and adjusted EPS guidance, but the changes to its guidance were very modest in our view. Overall, there was little in the firm’s earnings release that would alter our long-term view of TransUnion, and we will maintain our fair value estimate of $115 on TransUnion’s shares. We regard its shares as undervalued.