Equifax Earnings: Here’s Why Shares are Down Now

Equifax Inc. (NYSE:EFX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Equifax Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.29% to $0.87 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Rose 8.38% to $566.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equifax Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.85. It missed the average revenue estimate of $569.05 million.

Quoting Management: “Double digit revenue growth in four of our five operating segments, along with solid execution on our most important strategic initiatives, resulted in strong first quarter performance,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “Each of our operating segments continues to make very good progress and with this strong performance we remain confident with the full year guidance we outlined at the beginning of the year.”

Key Stats (on next page)…

Revenue increased 1.51% from $558.1 million in the previous quarter. EPS increased 11.54% from $0.78 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.9 to a profit $0.88. For the current year, the average estimate has moved down from a profit of $3.6 to a profit of $3.54 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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