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Equifax (EFX) Q1 Earnings Surpass Estimates, Revenues Miss
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Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
Revenues in the Workforce Solutions segment totaled $602.8 million, up marginally from the year-ago quarter and missing our estimate of $605.3 million. Within the segment, Verification Services’ revenues of $476.5 million increased 5% year over year. Employer Services’ revenues of $126.3 million saw a 10% year-over-year decline.
Revenues in the USIS segment were $465.3 million, up 10% from the year-ago quarter and beating our estimate of $457.5 million. Within the segment, Online Information Solutions’ revenues of $380.2 million moved up 12% from the year-ago quarter. Mortgage Solutions’ revenues of $38 million increased 14% year over year. Financial Marketing Services’ revenues were $47.1 million, which decreased marginally from the year-ago quarter.
Revenues in the International division totaled $321.3 million, gaining 13% and 20% year over year on a reported basis and a local currency basis, respectively, and missing our estimate of $332.1 million. Asia Pacific revenues of $78.2 million declined 13% from the year-ago quarter on a reported basis and 10% on a local currency basis. Revenues from Europe amounted to $86.2 million, up 14% year over year on a reported basis and 10% on a local currency basis. Latin America revenues of $91.1 million grew 65% year over year on a reported basis and more than 100% on a local currency basis. Canada revenues of $65.8 million moved up 4% year over year, both on a reported basis and a local currency basis.
Operating Results
Adjusted EBITDA in the first quarter of 2024 totaled $404.6 million, reflecting a 7% increase from the year-ago quarter. The adjusted EBITDA margin was 29.1%, which decreased 10 basis points from the year-ago quarter.
Workforce Solutions’ adjusted EBITDA margin was 51.1% compared with 50.4% a year ago. Adjusted EBITDA margin for the USIS division was 32.7% compared with 32.6% in the year-ago quarter. The adjusted EBITDA margin for the International segment was 24.3% compared with 23.5% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the first quarter with cash and cash equivalents of $201 million compared with $216.8 billion at the end of the preceding quarter. The company has a long-term debt of $4.7 billion, flat with the preceding quarter.
Cash generated from operating activities amounted to $252.7 million, whereas capital expenditure totaled $131.9 million. The company distributed $48.2 million as dividends in the quarter.
Q2 and 2024 Outlook
For the second quarter of 2024, EFX expects revenues of $1.41-$1.43 billion. The Zacks Consensus Estimate for revenues is pegged at $1.44 billion, which lies above the company’s guided range. It expects adjusted earnings per share (EPS) of $1.65-$1.75, whereas the consensus estimate for the same is pegged at $1.86, which is more than the guided range.
For 2024, Equifax anticipates revenues of $5.67-$5.77 billion. The consensus estimate for revenues is pegged at $5.77 billion. The company expects adjusted EPS of $7.2-$7.5. The consensus mark for the same is pegged at $7.53 per share, which lies slightly above the guided range.
Currently, Equifax currently carries a Zacks Rank #3 (Hold).
Earnings Snapshot of Some Business Services Stocks
Omnicom Group Inc. (OMC - Free Report) reported impressive first-quarter 2024 results.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
MMS’ quarterly adjusted earnings of $1.34 per share surpassed the Zacks Consensus Estimate by 4.7% and increased 42.6% year over year. Revenues of $1.33 billion beat the consensus mark by 3.5% and increased 6.2% year over year.
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Equifax (EFX) Q1 Earnings Surpass Estimates, Revenues Miss
Equifax Inc. (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
Equifax, Inc. Price and EPS Surprise
Equifax, Inc. price-eps-surprise | Equifax, Inc. Quote
Segmental Information
Revenues in the Workforce Solutions segment totaled $602.8 million, up marginally from the year-ago quarter and missing our estimate of $605.3 million. Within the segment, Verification Services’ revenues of $476.5 million increased 5% year over year. Employer Services’ revenues of $126.3 million saw a 10% year-over-year decline.
Revenues in the USIS segment were $465.3 million, up 10% from the year-ago quarter and beating our estimate of $457.5 million. Within the segment, Online Information Solutions’ revenues of $380.2 million moved up 12% from the year-ago quarter. Mortgage Solutions’ revenues of $38 million increased 14% year over year. Financial Marketing Services’ revenues were $47.1 million, which decreased marginally from the year-ago quarter.
Revenues in the International division totaled $321.3 million, gaining 13% and 20% year over year on a reported basis and a local currency basis, respectively, and missing our estimate of $332.1 million. Asia Pacific revenues of $78.2 million declined 13% from the year-ago quarter on a reported basis and 10% on a local currency basis. Revenues from Europe amounted to $86.2 million, up 14% year over year on a reported basis and 10% on a local currency basis. Latin America revenues of $91.1 million grew 65% year over year on a reported basis and more than 100% on a local currency basis. Canada revenues of $65.8 million moved up 4% year over year, both on a reported basis and a local currency basis.
Operating Results
Adjusted EBITDA in the first quarter of 2024 totaled $404.6 million, reflecting a 7% increase from the year-ago quarter. The adjusted EBITDA margin was 29.1%, which decreased 10 basis points from the year-ago quarter.
Workforce Solutions’ adjusted EBITDA margin was 51.1% compared with 50.4% a year ago. Adjusted EBITDA margin for the USIS division was 32.7% compared with 32.6% in the year-ago quarter. The adjusted EBITDA margin for the International segment was 24.3% compared with 23.5% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the first quarter with cash and cash equivalents of $201 million compared with $216.8 billion at the end of the preceding quarter. The company has a long-term debt of $4.7 billion, flat with the preceding quarter.
Cash generated from operating activities amounted to $252.7 million, whereas capital expenditure totaled $131.9 million. The company distributed $48.2 million as dividends in the quarter.
Q2 and 2024 Outlook
For the second quarter of 2024, EFX expects revenues of $1.41-$1.43 billion. The Zacks Consensus Estimate for revenues is pegged at $1.44 billion, which lies above the company’s guided range. It expects adjusted earnings per share (EPS) of $1.65-$1.75, whereas the consensus estimate for the same is pegged at $1.86, which is more than the guided range.
For 2024, Equifax anticipates revenues of $5.67-$5.77 billion. The consensus estimate for revenues is pegged at $5.77 billion. The company expects adjusted EPS of $7.2-$7.5. The consensus mark for the same is pegged at $7.53 per share, which lies slightly above the guided range.
Currently, Equifax currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Omnicom Group Inc. (OMC - Free Report) reported impressive first-quarter 2024 results.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Maximus, Inc. (MMS - Free Report) reported impressive first-quarter fiscal 2024 results.
MMS’ quarterly adjusted earnings of $1.34 per share surpassed the Zacks Consensus Estimate by 4.7% and increased 42.6% year over year. Revenues of $1.33 billion beat the consensus mark by 3.5% and increased 6.2% year over year.