Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis.
However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues in the USIS division came in at $397.4 million, down 9% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $314.4 million were down 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $32.1 million declined 31% year over year. Financial Marketing Services’ revenues came in at $50.9 million, down 8% year over year.
Revenues in the International division totaled $288 million, up 6% year over year on a reported basis and 17% on a local-currency basis. The Asia Pacific revenues of $87.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $80.7 million, up 6% year over year on a reported basis and 24% on a local-currency basis. Latin America revenues of $54 million grew 21% year over year on a reported basis and 34% on a local-currency basis. Canada revenues of $66.2 million were up 9% year over year on a reported basis and 12% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $558.9 million, up 9% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $454.5 million were up 13% year over year. Employer Services revenues of $104.4 million fell 7% year over year.
Operating Results
Adjusted EBITDA in the third quarter of 2022 came in at $404.9 million, up 1% from the year-ago quarter’s level. Adjusted EBITDA margin fell to 32.5% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 34.1% compared with 38.8% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 26.8% compared with 26.7% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 49.5% compared with 53.9% a year ago.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2022 with cash and cash equivalents of $241.7 million compared with $223.6 million at the end of the prior quarter. Long-term debt was $4.82 billion compared with $4.07 billion in the year-ago quarter.
EFX utilized $354.9 million of cash from operating activities while capex was $153 million. Also, Equifax paid out dividends of $47.6 million to its shareholders in the reported quarter.
Fourth-Quarter and Updated 2022 Guidance
For the fourth quarter of 2022, Equifax expects revenues between $1.165 and $1.185 billion. The Zacks Consensus Estimate of $1.21 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.68 lies above the guidance.
For 2022, revenues are now expected between $5.089 billion and $5.109 billion compared with the prior guidance of $5.07-$5.13 billion. The midpoint of the guided range ($5.099) lies below the Zacks Consensus Estimate of $5.10 billion.
Adjusted EPS is now anticipated in the range of $7.49-$7.59 compared with the prior guidance of $7.55-$7.80. The Zacks Consensus Estimate of $7.63 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 third-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Nov 2. The stock has an expected earnings growth rate of 56.9% for the current year.
CCRN's shares have gained 67.8% in the past year. Cross Country Healthcare has a long-term earnings growth rate of 10%.
Waste Management will report quarterly numbers on Oct 26. The stock has an expected earnings growth rate of 17.6% for the current year.
Waste Management has a long-term earnings growth rate of 13.6%.
Republic Services will report results on Oct 27. The stock has an expected earnings growth rate of 14.4% for the current year.
RSG’s shares have gained 2.1% in the past year. Republic Services has a long-term earnings growth rate of 11.3%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis.
However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues in the USIS division came in at $397.4 million, down 9% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $314.4 million were down 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $32.1 million declined 31% year over year. Financial Marketing Services’ revenues came in at $50.9 million, down 8% year over year.
Revenues in the International division totaled $288 million, up 6% year over year on a reported basis and 17% on a local-currency basis. The Asia Pacific revenues of $87.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $80.7 million, up 6% year over year on a reported basis and 24% on a local-currency basis. Latin America revenues of $54 million grew 21% year over year on a reported basis and 34% on a local-currency basis. Canada revenues of $66.2 million were up 9% year over year on a reported basis and 12% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $558.9 million, up 9% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $454.5 million were up 13% year over year. Employer Services revenues of $104.4 million fell 7% year over year.
Operating Results
Adjusted EBITDA in the third quarter of 2022 came in at $404.9 million, up 1% from the year-ago quarter’s level. Adjusted EBITDA margin fell to 32.5% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 34.1% compared with 38.8% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 26.8% compared with 26.7% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 49.5% compared with 53.9% a year ago.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2022 with cash and cash equivalents of $241.7 million compared with $223.6 million at the end of the prior quarter. Long-term debt was $4.82 billion compared with $4.07 billion in the year-ago quarter.
EFX utilized $354.9 million of cash from operating activities while capex was $153 million. Also, Equifax paid out dividends of $47.6 million to its shareholders in the reported quarter.
Fourth-Quarter and Updated 2022 Guidance
For the fourth quarter of 2022, Equifax expects revenues between $1.165 and $1.185 billion. The Zacks Consensus Estimate of $1.21 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.68 lies above the guidance.
For 2022, revenues are now expected between $5.089 billion and $5.109 billion compared with the prior guidance of $5.07-$5.13 billion. The midpoint of the guided range ($5.099) lies below the Zacks Consensus Estimate of $5.10 billion.
Adjusted EPS is now anticipated in the range of $7.49-$7.59 compared with the prior guidance of $7.55-$7.80. The Zacks Consensus Estimate of $7.63 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 third-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Nov 2. The stock has an expected earnings growth rate of 56.9% for the current year.
CCRN's shares have gained 67.8% in the past year. Cross Country Healthcare has a long-term earnings growth rate of 10%.
Waste Management will report quarterly numbers on Oct 26. The stock has an expected earnings growth rate of 17.6% for the current year.
Waste Management has a long-term earnings growth rate of 13.6%.
Republic Services will report results on Oct 27. The stock has an expected earnings growth rate of 14.4% for the current year.
RSG’s shares have gained 2.1% in the past year. Republic Services has a long-term earnings growth rate of 11.3%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on EFX - FREE
Get the latest research report on WM - FREE
Get the latest research report on RSG - FREE
Get the latest research report on CCRN - FREE