TransUnion Disappoints in Q2 With Rare Revenue Miss and Trimmed Core Organic Revenue Growth Outlook

TransUnion reported a messy second quarter. While 5% organic constant currency revenue growth might not seem bad given the uncertain economic environment, the $948 million in revenue the firm reported in the quarter fell below its guidance range of $958 million-$968 million, a rare miss. In addition, the firm lowered its back half of 2022 revenue target by $85 million and not just because of mortgage or foreign exchange headwinds. We are maintaining our wide moat rating but expect to lower our $115 fair value estimate in the 5%-15% range. In the credit bureau space, we continue to prefer Equifax as we believe its income and employment verification is differentiated with multiple secular growth drivers.