TransUnion Earnings: Solid Quarter, Outlook Maintained

TransUnion reported a decent second quarter. Revenue grew 3% on an organic constant currency basis to $968 million, which beat the firm’s outlook of $948 million-$958 million and the FactSet consensus of $958 million. Likewise, adjusted EBITDA of $339 million and adjusted EPS of $0.86 edged out the consensus estimates of $335 million and $0.83, respectively. Despite the strong quarter, TransUnion maintained its 2023 outlook, which we attribute to the uncertain macroeconomic environment, weakening mortgage outlook, and perhaps conservativism as the stock has previously suffered when the firm modestly missed guidance. Overall, we will maintain our fair value estimate of $101 and wide moat rating on TransUnion’s shares.