Transunion : Rbc Cuts Target Price To $100 From $121

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Press Release: Student Loan Delinquencies Among Renters Double In Early 2025

Reuters

TransUnion

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Student Loan Delinquencies Among Renters Double In Early 2025

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TransUnion

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Reflecting On Data & Business Process Services Stocks’ Q3 Earnings: ADP (NASDAQ:ADP)

Stock Story

Automatic Data Processing

Broadridge Financial Solutions

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TransUnion

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As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data & business process services industry, including ADP and its peers.

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 2.7% since the latest earnings results.

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. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $255.94.

Is now the time to buy ADP? Access our full analysis of the earnings results 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 delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $226.55.

Is now the time to buy Broadridge? 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 3.5% since the results and currently trades at $224.07.

Read our full analysis of Verisk’s results here.

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 topped analysts’ expectations by 3.2%. Overall, it was a strong quarter as it also recorded 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 4% since reporting and currently trades at $83.87.

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

EXL

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

EXL reported revenues of $529.6 million, up 12.2% year on year. This print beat analysts’ expectations by 1.2%. It was a satisfactory quarter as it also logged a narrow beat of analysts’ revenue estimates.

The stock is down 3.4% since reporting and currently trades at $40.05.

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

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National Cinemedia - Co Announces Partnership With Transunion

Reuters

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Holiday Shoppers Fall Into Two Camps This Year: Those Who Spend and Those Who Scrimp. — Barrons.com

Dow Jones Newswires

By Sabrina Escobar

Even as Americans pause for a day of Thanksgiving, the holiday shopping season is shaping up once again as a tale of haves and have-nots

Although many forecasters predict solid sales growth from November through year-end, they warn that the spoils will be spread unevenly, reflecting winners and losers among both consumers and retailers.

Lower-income families have been hurt by the recent federal shutdown, tariff-related price increases, and a slowing labor market, and are expected to spend less this year on travel, gifts and holiday decor. Higher-end shoppers, meanwhile, are being buoyed by a rising stock market, growing home equity and sometimes pay increases as well.

It's all part of what economists call the K-shaped economy, in which purchases from affluent shopper shoot up like the upper arm of the K, even as purchases from lower-income Americans droop like the bottom arm of the K. For investors, this explains why both luxury retailer Hermès and discount king Walmart are growing revenue at a healthy clip even as sales at middle-market merchants like Kohl's and Bath & Body Works are hurting.

Households making more than $250,000 a year now account for roughly half of all consumer spending and almost a third of gross domestic product, according to an analysis by Moody's Analytics. And as their lower-income countrymen curb their spending, the affluent are going to be "called upon to drive more of the sales and more of the visits this holiday season," said R.J. Hottovy, head of analytical research at Placer.ai.

Higher-income consumers appear up to the task. Soaring stock prices and home-value appreciation have padded wealthier households' balance sheets. As a result, the National Retail Federation, a retail trade group, expects retail sales to increase by between 3.7% and 4.2% year over year from Nov. 1 through Dec. 31. Other forecasts have placed growth estimates in a similar range.

That said, most holiday forecasts aren't adjusted for inflation, which is up about 3% on an annual basis. That means the lion's share of the season's headline growth will be driven by price increases rather than the purchase of additional units, reflecting some of the underlying weakness of this year's sales.

The K-Shaped Holiday

The macroeconomic uncertainty created by constant changes to trade policy, shifting labor market dynamics, and the government shutdown, which delayed official economic data releases, has made it hard for forecasters like the NRF to nail down their spending outlooks for the holiday season.

That same uncertainty is weighing on shoppers. Consumer sentiment, a gauge into how Americans feel about the economy, is hovering near record lows as households fret about day-to-day affordability. Inflation is a key concern: Although the annual rate of inflation has come down from its highs in 2022, tariffs have started edging prices higher. And for households still trying to absorb the increases of the past five years, any inflation at all is hard to digest.

Lower- and middle-income households, who are more likely to live paycheck to paycheck, have been especially vulnerable to price fluctuations. Nascent concerns over the labor market weakening has prompted many to rethink spending plans. A Deloitte survey of 4,720 consumers found that lower and middle-income households were planning on reducing their total holiday spending by 24% and 13%, respectively, from a year ago. To afford gifts, they are planning to cut back on decorations, new outfits, and dining out.

"The consumer will prioritize what goes under the tree versus what goes on the tree," said Rick Gomez, Target's chief commercial officer, on a call with reporters last week.

While not immune to the macro challenges, wealthier households have had more leeway to spend. In October, spending among high-income households grew 2.7% in October from a year prior, according to Bank of America credit- and debit-card data, while spending for lower-income groups lagged behind at a 0.7% increase.

Rich Americans' net worth has expanded in the past few years, buoyed by wage gains, rising home prices, and importantly, a record-breaking stock market, says Charlie Wise, head of global research and consulting at TransUnion. Indeed, consumer sentiment readings dating back to 2018 suggest that stock market participants tend to have a better view of the economy than nonparticipants.

2026 may bring more fuel to wealthy households' shopping engines. President Donald Trump's One Big Beautiful Bill carries a slew of tax breaks and new deductions that could be a welcome windfall for the affluent come tax season, further bolstering their drive to spend.

Betting on the K

Investors should keep these dynamics in mind as they position their portfolios for the end of the year. Stocks that cater to either end of the K will likely come out ahead, while those stuck in the middle will struggle.

Luxury stocks are a good way to play to the top. Although the sector has suffered in the past two years from soft demand for high-end goods — the S&P Global Luxury Index has gained about 16% to the S&P 500's 47% gain in the past two years as of Monday's close — many luxury brands recently said global sales improved in the third quarter, including in the U.S. Importantly, brands said that modest tariff-related price increases hadn't dampened the resurgence.

"Trade wars have shocked the system of both luxury brands and their shoppers, so these gains are a strong sign that the core luxury consumer will keep spending," wrote Claire Tassin, a retail and e-commerce analyst at Morning Consult.

Over the past few years, Hermès has been one of the best performing pure-play luxury stocks given its strong appeal among the uber-rich. But with the stock recently trading at 44.4 times the next 12 months' earnings, shares are looking as pricey as its bags. LVMH Moët Hennessy Louis Vuitton's P/E ratio of 26.6 seems more palatable, especially as its sales recently returned to growth.

Younger shoppers are emerging as an important driver of growth for the industry, Morning Consult's data suggests, with wealthy millennials and Gen Z adults leading demand for high-end apparel. To capitalize on that trend, consider Ralph Lauren or Tapestry stock. Both companies have been gaining market share among younger shoppers, and have recently flagged that their momentum was strong heading into the holiday season.

At the other end of the K, discounters are winning big. Greg Halter, director of research at Carnegie Investment Counsel, thinks Amazon.com and TJMaxx parent company TJX could benefit from consumers' value-centric mindset. Walmart is another standout: the company recently raised its full-year guidance to reflect continuing sales growth, fueled by market share-gains across the income spectrum.

"Walmart is better insulated than just about anybody given the value proposition that we have," said Chief Financial Officer John David Rainey. "If pocketbooks are being stretched and consumers are being choiceful and value-seeking, it stands to reason, if there's more pressure on the consumer, they're only going to become more so."

In contrast, retailers that fail to provide strong value will struggle to attract consumers. Morgan Stanley analysts flag Tommy Hilfiger, Calvin Klein parent company PVH, as a potential laggard, citing a slowdown in sales in recent weeks and elevated inventory levels that may lead to higher markdowns down the road.

UBS analyst Jay Sole is bearish on Kohl's stock, writing in a note Monday that the company's " well below average growth" hasn't been fully priced into the heavily shorted stock. Its 51% gain this year is more a reflection of renewed interest from retail investors looking to spark a so-called short squeeze rather than improvements in the company's business fundamentals.

Bath & Body Works sees trouble ahead; the company just slashed its guidance for the full year, reflecting a pull back in demand from inflation-strapped consumers. CEO Daniel Heaf lays out the conundrum facing many households this holiday season: "Do I want to put food on my table, or do I want a candle?" he said on a call with Barron's. "I think that becomes a pretty binary choice."

Write to Sabrina Escobar at sabrina.escobar@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Data & Business Process Services Stocks Q3 Earnings: Broadridge (NYSE:BR) Best of the Bunch

Stock Story

Broadridge Financial Solutions

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 .

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

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

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

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.

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