• Equifax forecasts its 2Q revenue to be between $1.41 billion to $1.43 billion, missing the estimated $1.44 billion.
• The company maintains its yearly forecast – expects revenue between $5.67 billion to $5.77 billion, missing the estimated $5.8 billion.
• Equifax’s 1Q results indicate an adjusted EPS of $1.50 compared to $1.43 y/y, meeting the estimated $1.43.
• Operating revenue stands at $1.39 billion, an increase of 6.7% y/y, falling short of the estimated $1.41 billion.
• Workforce Solutions saw a revenue of $602.8 million, a 1.1% increase y/y, missing the estimate of $621.9 million.
• There was a 10% increase in revenues from United States Information Solutions to $465.3 million, surpassing the estimated $459 million.
• International Information Solutions Revenue rose by 13% to $321.3 million, falling short of the estimated $325.8 million.
• Asia Pacific revenue witnessed a drop of 13% to $78.2 million, below the expected $85.6 million.
• There was an increase of 14% y/y in Europe revenue to $86.2 million, surpassing the estimated $82.8 million.
• A striking 65% y/y increase in Latin America revenue to $91.1 million, outperforming the estimates of $88.5 million.
• Canada revenues increased slightly by 4.3% to $65.8 million, slightly lower than the estimated $66.5 million.
• Operating income rose 9.4% y/y to $224.7 million, falling short of the estimated $234.8 million.
• Comments reveal that despite a 19% decline in US mortgage credit inquiries, there’s a 6% growth in the US mortgage business.
• Workforce Solutions saw a strong 15% non-mortgage Verification Services revenue growth led by Government business, with 1% overall growth from the US mortgage market decline.
• Expected EBITDA margins are to expand to 33.3%, due to organic revenue growth and additional saving costs from Cloud spending reductions.
• The company currently stands at 16 buys, 5 holds, and 1 sell.
Equifax Inc on Smartkarma
Equifax Inc has been covered by top independent analysts on Smartkarma, a leading investment research network. Baptista Research, in their report “Equifax Inc: New Innovations & Its Core Strategy To Achieving Leadership Global Data & Analytics! – Major Drivers,” highlighted the company’s strong performance despite challenges in the mortgage market. Equifax achieved 2% organic revenue growth and introduced over 100 new products, demonstrating resilience and innovation.
In another report by Baptista Research titled “Equifax Inc.: Unlocking the Power of Cloud Transformation! – Major Drivers,” concerns were raised about Equifax failing to meet Wall Street’s revenue and earnings expectations. The report analyzed the company’s financial statements and pointed out areas for improvement in light of disappointing results. These insights provide valuable perspectives for investors evaluating Equifax’s future prospects.
A look at Equifax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Equifax Inc, a company that connects buyers and sellers through various business services, has received mixed reviews in its Smartkarma Smart Scores. Despite a moderate Value and Dividend score of 2 each, Equifax shows promise in Growth with a score of 3. Additionally, the company demonstrates strong Momentum with a score of 4, suggesting positive movement in the market. However, Equifax falls short in terms of Resilience with a score of 2. Overall, Equifax’s performance indicators point towards a cautiously optimistic long-term outlook, with potential for growth and momentum in the future.
With a diverse portfolio spanning across industries such as financial services, retail, credit card, telecommunications/utilities, transportation, information technology, healthcare, and government, Equifax Inc remains a significant player in the information management and customer relationship management sectors. While facing some challenges in resilience, the company’s growth prospects and market momentum indicate a potentially promising trajectory in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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