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) Beats on Q2 Earnings, Trims 2022 Guidance
Read MoreHide Full Article
Equifax Inc. (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
Adjusted earnings (excluding 46 cents from non-recurring items) of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. The reported figure exceeded the guided range of $1.98-$2.08.
However, revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year on a reported basis and 8% on a local-currency basis. The reported figure falls within the guided range of $1.31-$1.33 billion. Equifax reported its 13 consecutive quarters of double-digit revenue growth.
Revenues in the USIS division came in at $421.4 million, down 8% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $329.2 million were down 5% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $36.8 million declined 25% year over year. Financial Marketing Services’ revenues came in at $55.4 million, down 5% year over year.
Revenues in the International division totaled $286.1 million, up 3% year over year on a reported basis and 11% on a local-currency basis. Asia Pacific revenues of $90.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $79.8 million, up 4% year over year on a reported basis and 16% on a local-currency basis. Latin America revenues of $52.2 million grew 18% year over year on a reported basis and 28% on a local-currency basis. Canada revenues of $64 million fell 1% year over year on a reported basis but inched up 2% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $609.2 million, up 21% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $504.5 million were up 28% year over year. Employer Services revenues of $104.7 million fell 3% year over year.
Operating Results
Adjusted EBITDA in the second quarter of 2022 came in at $461.3 million, up 7% from the year-ago quarter’s level. Adjusted EBITDA margin rose to 35% from 34.9% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 38.2% compared with 38.9% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 24.7% compared with 26.8% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 53.4% compared with 57.5% a year ago.
Balance Sheet and Cash Flow
Equifax exited second-quarter 2022 with cash and cash equivalents of $223.6 million compared with $200.9 million at the end of the prior quarter. Long-term debt was $4.07 billion compared with $4.47 billion in the year-ago quarter.
EFX utilized $275.3 million of cash from operating activities while capex was $158.9 million. Also, Equifax paid out dividends of $47.8 million to its shareholders in the reported quarter.
Third-Quarter and 2022 Guidance
For the third quarter of 2022, Equifax expects revenues between $1.21 and $1.23 billion. The Zacks Consensus Estimate of $1.24 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.60-$1.70. The Zacks Consensus Estimate of $1.91 lies above the guidance.
Equifax lowered its view for 2022. Revenues are now expected between $5.07 billion and $5.13 billion compared with the prior guidance of $5.15-$5.25 billion. The Zacks Consensus Estimate of $5.18 billion exceeds the updated guidance.
Adjusted EPS is now anticipated in the range of $7.55-$7.80 compared with the prior guidance of $8.00-$8.30. The Zacks Consensus Estimate of $8.08 exceeds the updated guidance.
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Equifax (EFX) Beats on Q2 Earnings, Trims 2022 Guidance
Equifax Inc. (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
Adjusted earnings (excluding 46 cents from non-recurring items) of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. The reported figure exceeded the guided range of $1.98-$2.08.
However, revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year on a reported basis and 8% on a local-currency basis. The reported figure falls within the guided range of $1.31-$1.33 billion. Equifax reported its 13 consecutive quarters of double-digit revenue growth.
Let’s check out the numbers in detail:
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Segmental Revenues
Revenues in the USIS division came in at $421.4 million, down 8% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $329.2 million were down 5% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $36.8 million declined 25% year over year. Financial Marketing Services’ revenues came in at $55.4 million, down 5% year over year.
Revenues in the International division totaled $286.1 million, up 3% year over year on a reported basis and 11% on a local-currency basis. Asia Pacific revenues of $90.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $79.8 million, up 4% year over year on a reported basis and 16% on a local-currency basis. Latin America revenues of $52.2 million grew 18% year over year on a reported basis and 28% on a local-currency basis. Canada revenues of $64 million fell 1% year over year on a reported basis but inched up 2% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $609.2 million, up 21% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $504.5 million were up 28% year over year. Employer Services revenues of $104.7 million fell 3% year over year.
Operating Results
Adjusted EBITDA in the second quarter of 2022 came in at $461.3 million, up 7% from the year-ago quarter’s level. Adjusted EBITDA margin rose to 35% from 34.9% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 38.2% compared with 38.9% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 24.7% compared with 26.8% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 53.4% compared with 57.5% a year ago.
Balance Sheet and Cash Flow
Equifax exited second-quarter 2022 with cash and cash equivalents of $223.6 million compared with $200.9 million at the end of the prior quarter. Long-term debt was $4.07 billion compared with $4.47 billion in the year-ago quarter.
EFX utilized $275.3 million of cash from operating activities while capex was $158.9 million. Also, Equifax paid out dividends of $47.8 million to its shareholders in the reported quarter.
Third-Quarter and 2022 Guidance
For the third quarter of 2022, Equifax expects revenues between $1.21 and $1.23 billion. The Zacks Consensus Estimate of $1.24 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.60-$1.70. The Zacks Consensus Estimate of $1.91 lies above the guidance.
Equifax lowered its view for 2022. Revenues are now expected between $5.07 billion and $5.13 billion compared with the prior guidance of $5.15-$5.25 billion. The Zacks Consensus Estimate of $5.18 billion exceeds the updated guidance.
Adjusted EPS is now anticipated in the range of $7.55-$7.80 compared with the prior guidance of $8.00-$8.30. The Zacks Consensus Estimate of $8.08 exceeds the updated guidance.
Currently, Equifax carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report second-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.
CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.
Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.
WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.
Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.
RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.