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Adjusted earnings of $1.60 per share beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $785-$805 million.
So far this year, shares of Equifax have gained 19.9%, compared with 1% growth of the industry it belongs to and 1.4% increase of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the U.S. Information Solutions division came in at $365.6 million, up 10% from the year-ago quarter. Within the division, Online Information Solutions’ revenues of $262.9 million were up 7% year over year. Mortgage Solutions’ revenues of $51.2 million improved 44% year over year. Financial Marketing Services’ revenues came in at $51.5 million, up 1% year over year. The segment contributed 37% of total revenues.
Revenues in the International division totaled $180.5 million, down 21% year over year on a reported basis and 15% on a local-currency basis. Asia Pacific revenues of $65.2 million declined 14% year over year on a reported basis and 9% on a local-currency basis. Revenues from Europe came in at $48 million, which decreased 27% year over year on a reported basis and 25% on a local-currency basis. Latin America revenues of $34.2 million declined 28% year over year on a reported basis and 14% on a local-currency basis. Canada revenues of $33.1 million declined 16% year over year on a reported basis and 13% on a local-currency basis. The International segment contributed 18% of total revenues.
Revenues in the Workforce Solutions segment totaled $352.9 million, up 53% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $251.9 million were up 46% year over year. Employer Services revenues of $101 million were up 75% year over year. Workforce Solutions contributed 36% of total revenues.
Revenues in the Global Consumer Solutions segment amounted to $83.8 million, down 5% year over year on both reported and local-currency basis. The segment contributed 9% of total revenues.
Adjusted EBITDA in the second quarter of 2020 came in at $353.2 million compared with $296.2 million in the year-ago quarter. Adjusted EBITDA margin rose to 35.9% from 33.7% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 44.7% compared with 42.9% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 27.8% compared with 25.3% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 51.5% compared with 49.4% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 23.1% compared with 23.9% in the year-ago quarter.
Equifax exited second-quarter 2020 with cash and cash equivalents of $1.35 billion compared with $369.9 million at the end of the prior quarter. Long-term debt was $3.87 billion compared with $3.51 billion at the end of the prior quarter.
The company generated $251.2 million of cash from operating activities and capex was $104.8 million. Also, Equifax paid out dividends of $47.3 million to shareholders in the reported quarter.
Investors interested in the broader Zacks Business Services sector are awaiting second-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Avis Budget Group (CAR - Free Report) and Waste Management (WM - Free Report) . While S&P Global and Avis Budget Group are slated to release their results on Jul 28, Waste Management is scheduled to release the same on Jul 30.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Equifax (EFX) Surpasses Q2 Earnings & Revenue Estimates
Equifax Inc. (EFX - Free Report) reported better-than-expected second-quarter 2020 results.
Adjusted earnings of $1.60 per share beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
Revenues of $982.8 million outpaced the consensus estimate by 6.4% and improved 12% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $785-$805 million.
So far this year, shares of Equifax have gained 19.9%, compared with 1% growth of the industry it belongs to and 1.4% increase of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the U.S. Information Solutions division came in at $365.6 million, up 10% from the year-ago quarter. Within the division, Online Information Solutions’ revenues of $262.9 million were up 7% year over year. Mortgage Solutions’ revenues of $51.2 million improved 44% year over year. Financial Marketing Services’ revenues came in at $51.5 million, up 1% year over year. The segment contributed 37% of total revenues.
Revenues in the International division totaled $180.5 million, down 21% year over year on a reported basis and 15% on a local-currency basis. Asia Pacific revenues of $65.2 million declined 14% year over year on a reported basis and 9% on a local-currency basis. Revenues from Europe came in at $48 million, which decreased 27% year over year on a reported basis and 25% on a local-currency basis. Latin America revenues of $34.2 million declined 28% year over year on a reported basis and 14% on a local-currency basis. Canada revenues of $33.1 million declined 16% year over year on a reported basis and 13% on a local-currency basis. The International segment contributed 18% of total revenues.
Revenues in the Workforce Solutions segment totaled $352.9 million, up 53% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $251.9 million were up 46% year over year. Employer Services revenues of $101 million were up 75% year over year. Workforce Solutions contributed 36% of total revenues.
Revenues in the Global Consumer Solutions segment amounted to $83.8 million, down 5% year over year on both reported and local-currency basis. The segment contributed 9% of total revenues.
Equifax, Inc. Revenue (TTM)
Equifax, Inc. revenue-ttm | Equifax, Inc. Quote
Operating Results
Adjusted EBITDA in the second quarter of 2020 came in at $353.2 million compared with $296.2 million in the year-ago quarter. Adjusted EBITDA margin rose to 35.9% from 33.7% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 44.7% compared with 42.9% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 27.8% compared with 25.3% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 51.5% compared with 49.4% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 23.1% compared with 23.9% in the year-ago quarter.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Balance Sheet and Cash Flow
Equifax exited second-quarter 2020 with cash and cash equivalents of $1.35 billion compared with $369.9 million at the end of the prior quarter. Long-term debt was $3.87 billion compared with $3.51 billion at the end of the prior quarter.
The company generated $251.2 million of cash from operating activities and capex was $104.8 million. Also, Equifax paid out dividends of $47.3 million to shareholders in the reported quarter.
Currently, Equifax carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are awaiting second-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Avis Budget Group (CAR - Free Report) and Waste Management (WM - Free Report) . While S&P Global and Avis Budget Group are slated to release their results on Jul 28, Waste Management is scheduled to release the same on Jul 30.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>