Equifax Earnings: Third Consecutive Quarter of Profit Growth

S&P 500 (NYSE:SPY) component Equifax Inc. (NYSE:EFX) reported its results for the second quarter. Equifax provides information solutions, employment and income verification, and human resources business process outsourcing services.

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Equifax Inc. Earnings Cheat Sheet

Results: Net income for Equifax Inc. rose to $76.4 million (64 cents per share) vs. $34.5 million (28 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 10% to $535.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equifax Inc. fell short of the mean analyst estimate of 72 cents per share. Analysts were expecting revenue of $530.9 million.

Quoting Management: “Broad-based revenue growth and operating performance were ahead of our expectations in the second quarter as our four largest business segments continued to execute well against their strategic objectives,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “While mortgage activity continues to be strong, we do expect it to slow down later in 2012. However, the core non-mortgage revenue growth continues to be within the range of our long term business model as our investments in new product innovation and key strategic growth initiatives continue to pay off.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 24.8% and in the fourth quarter of the last fiscal year, the figure rose 19.6%.

Revenue has increased for four consecutive quarters. Revenue increased 10.6% to $522.7 million in the first quarter. The figure rose 5.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 3.5% in the third quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 71 cents a share to 74 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $2.78 a share to $2.87 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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