Equifax Inc. (EFX - Free Report) reported better-than-expected fourth-quarter 2023 results.
Adjusted earnings (excluding 75 cents from non-recurring items) came in at $1.81 per share, beating the Zacks Consensus Estimate by 4% and increasing 19.1% from the year-ago figure.
Total revenues of $1.33 billion beat the consensus estimate by 1.1% and increased 10.7% from the year-ago figure on a reported basis and 14% on a local currency basis.
Segmental Information
Revenues in the Workforce Solutions segment totaled $559.5 million, up 10% from the year-ago quarter’s figure and beating our estimated $551.2 million. Within the segment, Verification Services’ revenues of $457.1 million increased 15% year over year. Employer Services’ revenues of $102.4 million indicate a 7% year-over-year decline.
Revenues in the USIS segment were $427.7 million, up 5% from the year-ago quarter’s level and beating our estimated $422.2 million. Within the segment, Online Information Solutions’ revenues of $327.5 million were up 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $22.9 million declined 12% year over year. Financial Marketing Services’ revenues were $77.3 million, which increased 7% year over year.
Revenues in the International division totaled $339.3 million, gaining 20% and 22% year over year on a reported basis and a local-currency basis, respectively. Asia Pacific revenues of $82.2 million declined 3% from the year-ago reported figure on a reported basis and 2% on a local-currency basis.
Revenues from Europe amounted to $93.6 million, up 15% year over year on a reported basis and 9% on a local currency basis. Latin America revenues of $98.6 million grew 85% year over year on a reported basis and more than 100% on a local-currency basis. Canada revenues of $64.9 million were up 1% year over year, both on a reported basis and a local-currency basis.
Operating Results
Adjusted EBITDA in the fourth quarter of 2023 totaled $446.6 million, reflecting a 20% increase from the year-ago quarter’s level. Adjusted EBITDA margin was 33.7%, which increased 260 basis points from the year-ago reported figure.
Workforce Solutions’ adjusted EBITDA margin was 51.2% compared with 46.8% a year ago. Adjusted EBITDA margin for the USIS division was 35.1% compared with 35.3% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 31.2% compared with 25.8% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the fourth quarter with cash and cash equivalents of $216.8 million. Equifax generated $322.1 million in cash from operating activities in the quarter. The company has a long-term debt of $4.74 billion, down from the quarter-ago reported figure of $5.5 billion. Capital expenditures were $145.7 million. The company distributed $48.1 million as dividends during the quarter.
Q1 and 2024 Outlook
For the first quarter of 2024, revenues are expected to be in the $1.375-$1.395 billion band. The Zacks Consensus Estimate for revenues is pegged at $1.41 billion, which lies above the guided range. Adjusted earnings per share (EPS) are expected to be in the range of $1.33-$1.43 while the consensus estimate of EPS is $1.81, which is more than the guided range.
For 2024, revenues are expected in the range of $5.67-$5.77 billion. The Zacks Consensus Estimate of $5.74 billion lies above the midpoint ($5.72 billion) of the guided range. Adjusted EPS is expected to be in the range of $7.2-$7.5. The consensus mark for earnings is pegged at $8.11 per share, which lies above the guided range.
Equifax currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
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Equifax Inc. (EFX - Free Report) reported better-than-expected fourth-quarter 2023 results.
Adjusted earnings (excluding 75 cents from non-recurring items) came in at $1.81 per share, beating the Zacks Consensus Estimate by 4% and increasing 19.1% from the year-ago figure.
Total revenues of $1.33 billion beat the consensus estimate by 1.1% and increased 10.7% from the year-ago figure on a reported basis and 14% on a local currency basis.
Segmental Information
Revenues in the Workforce Solutions segment totaled $559.5 million, up 10% from the year-ago quarter’s figure and beating our estimated $551.2 million. Within the segment, Verification Services’ revenues of $457.1 million increased 15% year over year. Employer Services’ revenues of $102.4 million indicate a 7% year-over-year decline.
Revenues in the USIS segment were $427.7 million, up 5% from the year-ago quarter’s level and beating our estimated $422.2 million. Within the segment, Online Information Solutions’ revenues of $327.5 million were up 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $22.9 million declined 12% year over year. Financial Marketing Services’ revenues were $77.3 million, which increased 7% year over year.
Revenues in the International division totaled $339.3 million, gaining 20% and 22% year over year on a reported basis and a local-currency basis, respectively. Asia Pacific revenues of $82.2 million declined 3% from the year-ago reported figure on a reported basis and 2% on a local-currency basis.
Revenues from Europe amounted to $93.6 million, up 15% year over year on a reported basis and 9% on a local currency basis. Latin America revenues of $98.6 million grew 85% year over year on a reported basis and more than 100% on a local-currency basis. Canada revenues of $64.9 million were up 1% year over year, both on a reported basis and a local-currency basis.
Operating Results
Adjusted EBITDA in the fourth quarter of 2023 totaled $446.6 million, reflecting a 20% increase from the year-ago quarter’s level. Adjusted EBITDA margin was 33.7%, which increased 260 basis points from the year-ago reported figure.
Workforce Solutions’ adjusted EBITDA margin was 51.2% compared with 46.8% a year ago. Adjusted EBITDA margin for the USIS division was 35.1% compared with 35.3% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 31.2% compared with 25.8% in the year-ago quarter.
Balance Sheet & Cash Flow
EFX exited the fourth quarter with cash and cash equivalents of $216.8 million. Equifax generated $322.1 million in cash from operating activities in the quarter. The company has a long-term debt of $4.74 billion, down from the quarter-ago reported figure of $5.5 billion. Capital expenditures were $145.7 million. The company distributed $48.1 million as dividends during the quarter.
Q1 and 2024 Outlook
For the first quarter of 2024, revenues are expected to be in the $1.375-$1.395 billion band. The Zacks Consensus Estimate for revenues is pegged at $1.41 billion, which lies above the guided range. Adjusted earnings per share (EPS) are expected to be in the range of $1.33-$1.43 while the consensus estimate of EPS is $1.81, which is more than the guided range.
For 2024, revenues are expected in the range of $5.67-$5.77 billion. The Zacks Consensus Estimate of $5.74 billion lies above the midpoint ($5.72 billion) of the guided range. Adjusted EPS is expected to be in the range of $7.2-$7.5. The consensus mark for earnings is pegged at $8.11 per share, which lies above the guided range.
Equifax currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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