Equifax Earnings: Here’s Why Investors are Ambivalent Now

Equifax Inc. (NYSE:EFX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Equifax Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.32% to $0.92 in the quarter versus EPS of $0.74 in the year-earlier quarter.

Revenue: Rose 9.54% to $586.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equifax Inc. reported adjusted EPS income of $0.92 per share. By that measure, the company beat the mean analyst estimate of $0.9. It beat the average revenue estimate of $576.73 million.

Quoting Management: “Broad-based performance, including double digit revenue growth and expanded operating margins, drove our strong financial results in the second quarter,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “With the integration of the CSC acquisition nearly complete and accelerating growth in our core, non-mortgage activities and our strategic initiatives, I am highly confident in our full year guidance.”

Key Stats (on next page)…

Revenue increased 3.6% from $566.5 million in the previous quarter. EPS increased 5.75% from $0.87 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.91 and has not changed. For the current year, the average estimate has moved up from a profit of $3.6 to a profit of $3.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)