National Cinemedia - Co Announces Partnership With Transunion

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at data & business process services stocks, starting with Broadridge .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 9 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

While some data & business process services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.

Best Q3: Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Broadridge achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.2% since reporting and currently trades at $228.24.

We think Broadridge is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

CSG

Powering billions of critical customer interactions annually, CSG Systems provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

CSG reported revenues of $303.6 million, up 2.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $78.24.

Is now the time to buy CSG? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $219.74.

Read our full analysis of Verisk’s results here.

Equifax

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Equifax reported revenues of $1.54 billion, up 7.2% year on year. This print beat analysts’ expectations by 1.4%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 7% since reporting and currently trades at $214.89.

Read our full, actionable report on Equifax here, it’s free for active Edge members.

TransUnion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.17 billion, up 7.8% year on year. This result surpassed analysts’ expectations by 3.2%. It was a strong quarter as it also produced revenue guidance for next quarter beating analysts’ expectations and a solid beat of analysts’ revenue estimates.

TransUnion delivered the highest full-year guidance raise among its peers. The stock is up 5.4% since reporting and currently trades at $85.03.

Read our full, actionable report on TransUnion here, it’s free for active Edge members.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at data & business process services stocks, starting with Verisk .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 9 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

While some data & business process services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 5.3% since reporting and currently trades at $219.75.

Read our full report on Verisk here, it’s free for active Edge members.

Best Q3: Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year, outperforming analysts’ expectations by 3.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Broadridge pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $226.09.

Is now the time to buy Broadridge? Access our full analysis of the earnings results here, it’s free for active Edge members.

ADP

Processing one out of every six paychecks in the United States, ADP provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

ADP reported revenues of $5.18 billion, up 7.1% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a mixed quarter as it posted revenue guidance for next quarter meeting analysts’ expectations.

As expected, the stock is down 10.5% since the results and currently trades at $250.14.

Read our full analysis of ADP’s results here.

Equifax

Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.

Equifax reported revenues of $1.54 billion, up 7.2% year on year. This number topped analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 9.3% since reporting and currently trades at $209.62.

Read our full, actionable report on Equifax here, it’s free for active Edge members.

TransUnion

One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.

TransUnion reported revenues of $1.17 billion, up 7.8% year on year. This result surpassed analysts’ expectations by 3.2%. It was a strong quarter as it also recorded revenue guidance for next quarter beating analysts’ expectations and an impressive beat of analysts’ revenue estimates.

TransUnion scored the highest full-year guidance raise among its peers. The stock is up 3% since reporting and currently trades at $83.06.

Read our full, actionable report on TransUnion here, it’s free for active Edge members.