TransUnion (NYSE:TRU), the credit reporting firm, saw its shares tumble to a six-year low of $49.27 in early trading on Tuesday, marking a negative turn for the year. This significant drop followed the company's downward revision of its annual adjusted earnings guidance for 2023, attributed to declining volumes. InvestingPro data reveals that the company's market cap stands at $9070M USD, with a P/E ratio of 39.67, indicating a high earnings multiple, a point also highlighted in the InvestingPro Tips.
The firm now anticipates adjusted earnings for the year to range between $3.24 and $3.38 per share. This revised prediction is a decrease from the initial forecast of $3.49 to $3.62 per share, falling short of analyst projections as per FactSet data. Despite this downward revision, InvestingPro Tips suggests that the company's strong earnings should allow management to continue dividend payments. The company's dividend yield, as per InvestingPro data, is 0.65% as of 2023.
In an unexpected turn of events, TransUnion reported a loss of $2.07 per share in Q3 this year, contrasting sharply with the profit of 41 cents per share it posted in the same quarter last year. Looking ahead, Q4 adjusted earnings are projected to be between 67 cents and 72 cents per share. Yet, the company's net income is expected to grow this year, according to InvestingPro Tips.
Despite these challenges, TransUnion did report an increase in Q3 revenue to $968.7 million, up from last year's figure of $938.2 million. However, this fell short of the FactSet consensus estimate of $982.9 million due to slowing volumes in both U.S and U.K markets. CEO Chris Cartwright highlighted these market slowdowns as a key factor impacting the firm's performance. The InvestingPro data corroborates Cartwright's statement, showing a revenue growth of 10.17% in LTM2023.Q2, but a quarterly growth of just 2.08% in FY2023.Q2, indicating a recent slowdown.
For more insights and tips, readers can visit InvestingPro, which offers a comprehensive analysis of various companies, including TransUnion. The platform provides a total of 11 tips for TransUnion, including those mentioned in this article, and more real-time metrics.
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