We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Equifax (EFX) Q2 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Equifax Inc. (EFX - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
EFX’s adjusted earnings (excluding 51 cents from non-recurring items) were $1.82 per share, outpacing the Zacks Consensus Estimate by 5.8% and increasing by 6.4% on a year-over-year basis. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and jumped 8.6% from the year-ago quarter.
Revenues in the Workforce Solutions segment totaled $612.9 million, increasing 5% from the year-ago quarter and beating our expectation of $600.2 million. Within the segment, Verification Services’ revenues of $515.9 million were up 9% year over year. Employer Services’ revenues of $97 million declined 11% on a year-over-year basis.
USIS segment’s revenues were $478.3 million, grew 7% from the year-ago quarter and missing our anticipation of $481.9 million. Within the segment, Online Information Solutions’ revenues of $377.8 million increased 5% year over year. Mortgage Solutions’ revenues of $40.4 million jumped 33% from the year-ago quarter. Financial Marketing Services’ revenues were $60.1 million, which increased 7% on a year-over-year basis.
Revenues in the International division amounted to $339.3 million, up 17% and 28% year over year on a reported basis and a local currency basis, respectively. The metric missed our estimate of $347.7 million.
Latin America’s revenues of $97.3 million surged 71% from the year-ago quarter on a reported basis and more than 100% on a local currency basis. Revenues from Europe amounted to $88.2 million, up 12% year over year on a reported and local currency basis. Canada’s revenues of $69.2 million increased 4% year over year on a reported basis and 6% on a local currency basis. Revenues from Asia Pacific were $84.6 million, declining 4% from the year-ago quarter on a reported basis and 2% on a local currency basis.
Operating Results
Adjusted EBITDA in the second quarter of 2024 amounted to $457.7 million, reflecting a 6.1% increase from the year-ago quarter. The adjusted EBITDA margin was 32%, which declined 70 basis points from the year-ago quarter.
Workforce Solutions’ adjusted EBITDA margin was 52.8% compared with 51.5% a year ago. Adjusted EBITDA margin for the USIS division was 33.2% compared with 36% in the second quarter of 2023. The adjusted EBITDA margin for the international segment was 25.6% in comparison with 24.2% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the second quarter with cash and cash equivalents of $181.9 million, compared with $201 million at the end of the first quarter of 2024. The company has a long-term debt of $4.7 billion, flat with the preceding quarter.
Cash generated from operating activities amounted to $267.5 million, whereas capital expenditure totaled $136.7 million. The company distributed $48.2 million as dividends in the quarter.
Q3 and 2024 Outlook
For the third quarter of 2024, EFX raised its revenue guidance to $1.43-$1.45 billion compared with $1.41-$1.43 billion mentioned previously. The current Zacks Consensus Estimate is pegged at $1.42 billion, which is lower than the guided range. It raised the guidance for adjusted earnings per share (EPS) to $1.75-$1.85 compared with $1.65-$1.75 previously, whereas the current consensus estimate for EPS is pegged at $1.72, which is lower than the guided range.
For 2024, Equifax raised revenue guidance to $5.69-$5.75 billion compared with $5.67-$5.77 billion previously. The mid-point ($5.72 billion) of the revised guided range is below the current Zacks Consensus Estimate of $5.73 billion. The company reduced the adjusted EPS guidance to $7.22-$7.47 compared with $7.2-$7.5 previously. The mid-point ($7.35 per share) of the revised guided range is below the current Zacks Consensus Estimate of $7.37 billion.
Currently, Equifax carries a Zacks Rank #4 (sell).
Earnings Snapshot of Some Business Services Stocks
Verisk Analytics Inc. (VRSK - Free Report) has reported impressive first-quarter 2024 results.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant currency (OCC) basis.
S&P Global Inc. (SPGI - Free Report) has reported impressive first-quarter results.
SPGI’s adjusted EPS (excluding 85 cents from non-recurring items) of $4 surpassed the Zacks Consensus Estimate by 9% and increased 27.3% year over year. Revenues of $3.5 billion beat the consensus estimate by 2.9% and improved 10.5% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Equifax (EFX) Q2 Earnings and Revenues Surpass Estimates
Equifax Inc. (EFX - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
EFX’s adjusted earnings (excluding 51 cents from non-recurring items) were $1.82 per share, outpacing the Zacks Consensus Estimate by 5.8% and increasing by 6.4% on a year-over-year basis. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and jumped 8.6% 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 $612.9 million, increasing 5% from the year-ago quarter and beating our expectation of $600.2 million. Within the segment, Verification Services’ revenues of $515.9 million were up 9% year over year. Employer Services’ revenues of $97 million declined 11% on a year-over-year basis.
USIS segment’s revenues were $478.3 million, grew 7% from the year-ago quarter and missing our anticipation of $481.9 million. Within the segment, Online Information Solutions’ revenues of $377.8 million increased 5% year over year. Mortgage Solutions’ revenues of $40.4 million jumped 33% from the year-ago quarter. Financial Marketing Services’ revenues were $60.1 million, which increased 7% on a year-over-year basis.
Revenues in the International division amounted to $339.3 million, up 17% and 28% year over year on a reported basis and a local currency basis, respectively. The metric missed our estimate of $347.7 million.
Latin America’s revenues of $97.3 million surged 71% from the year-ago quarter on a reported basis and more than 100% on a local currency basis. Revenues from Europe amounted to $88.2 million, up 12% year over year on a reported and local currency basis. Canada’s revenues of $69.2 million increased 4% year over year on a reported basis and 6% on a local currency basis. Revenues from Asia Pacific were $84.6 million, declining 4% from the year-ago quarter on a reported basis and 2% on a local currency basis.
Operating Results
Adjusted EBITDA in the second quarter of 2024 amounted to $457.7 million, reflecting a 6.1% increase from the year-ago quarter. The adjusted EBITDA margin was 32%, which declined 70 basis points from the year-ago quarter.
Workforce Solutions’ adjusted EBITDA margin was 52.8% compared with 51.5% a year ago. Adjusted EBITDA margin for the USIS division was 33.2% compared with 36% in the second quarter of 2023. The adjusted EBITDA margin for the international segment was 25.6% in comparison with 24.2% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the second quarter with cash and cash equivalents of $181.9 million, compared with $201 million at the end of the first quarter of 2024. The company has a long-term debt of $4.7 billion, flat with the preceding quarter.
Cash generated from operating activities amounted to $267.5 million, whereas capital expenditure totaled $136.7 million. The company distributed $48.2 million as dividends in the quarter.
Q3 and 2024 Outlook
For the third quarter of 2024, EFX raised its revenue guidance to $1.43-$1.45 billion compared with $1.41-$1.43 billion mentioned previously. The current Zacks Consensus Estimate is pegged at $1.42 billion, which is lower than the guided range. It raised the guidance for adjusted earnings per share (EPS) to $1.75-$1.85 compared with $1.65-$1.75 previously, whereas the current consensus estimate for EPS is pegged at $1.72, which is lower than the guided range.
For 2024, Equifax raised revenue guidance to $5.69-$5.75 billion compared with $5.67-$5.77 billion previously. The mid-point ($5.72 billion) of the revised guided range is below the current Zacks Consensus Estimate of $5.73 billion. The company reduced the adjusted EPS guidance to $7.22-$7.47 compared with $7.2-$7.5 previously. The mid-point ($7.35 per share) of the revised guided range is below the current Zacks Consensus Estimate of $7.37 billion.
Currently, Equifax carries a Zacks Rank #4 (sell).
You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Verisk Analytics Inc. (VRSK - Free Report) has reported impressive first-quarter 2024 results.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant currency (OCC) basis.
S&P Global Inc. (SPGI - Free Report) has reported impressive first-quarter results.
SPGI’s adjusted EPS (excluding 85 cents from non-recurring items) of $4 surpassed the Zacks Consensus Estimate by 9% and increased 27.3% year over year. Revenues of $3.5 billion beat the consensus estimate by 2.9% and improved 10.5% year over year.