Equifax Inc. (EFX - Free Report) reported solid third-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.48 per share beat the consensus mark by 4 cents and improved 4.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.41-$1.46.
Revenues of $875.7 million outpaced the consensus estimate by $2.5 million and improved 5% year over year on a reported basis and 7% on a local currency basis. The reported figure came within the guided range of $865-$880 million.
During the reported quarter, Equifax entered into a partnership with Urjanet while continuing to progress well in its multi-year $1.25 billion EFX 2020 cloud technology and security transformation program.
So far this year, shares of Equifax have gained 49.7% compared with 32.3% rise of the industry it belongs to and 18.3% increase of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the USIS division came in at $315.5 million, up 2% from the year-ago quarter’s number. Within the division, Online Information Solutions revenues of $233 million were up 5% year over year. Mortgage Solutions revenues of $36.7 million declined 6% year over year. Financial Marketing Services revenues came in at $45.8 million, down 2% year over year. The segment contributed 36% to total revenues.
Revenues in the International division totaled $230.5 million, down 2% year over year on a reported but up 5% on a local currency basis. Asia Pacific revenues of $77.4 million declined 4% year over year on a reported basis but grew 2% on a local currency basis. Revenues from Europe came in at $64.8 million, which fell 5% year over year on a reported basis and slightlyon a local currency basis. Latin America revenues of $49.2 million improved 1% year over year on a reported basis and 15% on a local currency basis. Canada revenues of $39.1 million rose 5% year over year on a reported basis and 6% on a local currency basis. The International segment contributed 26% to total revenues.
Revenues in the Workforce Solutions segment totaled $240.6 million, up 19% from the year-ago quarter figure. Within the segment, Verification Services revenues of $185.3 million were up 19% year over year. Employer Services revenues of $55.3 million were down 5% year over year. Workforce Solutions contributed 28% to total revenues.
Revenues in the Global Consumer Solutions segment amounted to $89.1 million, up 1% year over year on a reported basis and local currency basis. The segment contributed 10% to total revenues.
Operating Results
Adjusted EBITDA in third-quarter 2019 improved 10% year over year to $304.1 million. Adjusted EBITDA margin rose to 33.9% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 44.4% compared with 46.2% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 30.9% compared with 29.4% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 48.8% compared with 47.5% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 24.9% compared with 28.3% in the year-ago quarter.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2019 with cash and cash equivalents of $167.5 million compared with $135.8 million at the end of the prior quarter. Long-term debt of $2.83 billion was flat with the prior quarter.
The company used $164.9 million of cash in operating activities and capex was $97.2 million. Also, Equifax paid out dividend of $47.2 million to shareholders in the reported quarter.
Q4 Guidance
For the fourth quarter of 2019, Equifax expects revenues in the range of $885-$900 million, indicating year-over-year local currency growth of 7.5-9.5%. The current Zacks Consensus Estimate of $884 million lies below the guided range.
Adjusted EPS is anticipated between $1.47 and $1.52 (including a negative foreign exchange impact of 2 cents).The current Zacks Consensus Estimate of $1.55 is above the guided range.
2019 Guidance
Equifax updated its full-year 2019 guidance for revenues while lowering the same for earnings.
For 2019, revenues are now expected between $3.507 and $3.522 billion compared with the previously guided range of $3.425-$3.525 billion. The current guidance indicates year-over-year local currency growth of 5% and 2% negative impact from foreign exchange movement. The current Zacks Consensus Estimate of $3.48 billion lies below the guided range.
Adjusted EPS is now anticipated between $5.55 per share and $5.60 per share compared with the previously guided range of $5.57-$5.77. The current guidance includes 15 cents of negative impact of foreign exchange movement. The current Zacks Consensus Estimate of $5.59 lies within the guided range.
Zacks Rank & Upcoming Releases
Currently, Equifax carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2019 earnings of key players like Clean Harbors (CLH - Free Report) , Aptiv (APTV - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Oct 30.
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Equifax Inc. (EFX - Free Report) reported solid third-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.48 per share beat the consensus mark by 4 cents and improved 4.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.41-$1.46.
Revenues of $875.7 million outpaced the consensus estimate by $2.5 million and improved 5% year over year on a reported basis and 7% on a local currency basis. The reported figure came within the guided range of $865-$880 million.
During the reported quarter, Equifax entered into a partnership with Urjanet while continuing to progress well in its multi-year $1.25 billion EFX 2020 cloud technology and security transformation program.
So far this year, shares of Equifax have gained 49.7% compared with 32.3% rise of the industry it belongs to and 18.3% increase of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the USIS division came in at $315.5 million, up 2% from the year-ago quarter’s number. Within the division, Online Information Solutions revenues of $233 million were up 5% year over year. Mortgage Solutions revenues of $36.7 million declined 6% year over year. Financial Marketing Services revenues came in at $45.8 million, down 2% year over year. The segment contributed 36% to total revenues.
Revenues in the International division totaled $230.5 million, down 2% year over year on a reported but up 5% on a local currency basis. Asia Pacific revenues of $77.4 million declined 4% year over year on a reported basis but grew 2% on a local currency basis. Revenues from Europe came in at $64.8 million, which fell 5% year over year on a reported basis and slightlyon a local currency basis. Latin America revenues of $49.2 million improved 1% year over year on a reported basis and 15% on a local currency basis. Canada revenues of $39.1 million rose 5% year over year on a reported basis and 6% on a local currency basis. The International segment contributed 26% to total revenues.
Revenues in the Workforce Solutions segment totaled $240.6 million, up 19% from the year-ago quarter figure. Within the segment, Verification Services revenues of $185.3 million were up 19% year over year. Employer Services revenues of $55.3 million were down 5% year over year. Workforce Solutions contributed 28% to total revenues.
Revenues in the Global Consumer Solutions segment amounted to $89.1 million, up 1% year over year on a reported basis and local currency basis. The segment contributed 10% to total revenues.
Operating Results
Adjusted EBITDA in third-quarter 2019 improved 10% year over year to $304.1 million. Adjusted EBITDA margin rose to 33.9% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 44.4% compared with 46.2% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 30.9% compared with 29.4% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 48.8% compared with 47.5% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 24.9% compared with 28.3% in the year-ago quarter.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2019 with cash and cash equivalents of $167.5 million compared with $135.8 million at the end of the prior quarter. Long-term debt of $2.83 billion was flat with the prior quarter.
The company used $164.9 million of cash in operating activities and capex was $97.2 million. Also, Equifax paid out dividend of $47.2 million to shareholders in the reported quarter.
Q4 Guidance
For the fourth quarter of 2019, Equifax expects revenues in the range of $885-$900 million, indicating year-over-year local currency growth of 7.5-9.5%. The current Zacks Consensus Estimate of $884 million lies below the guided range.
Adjusted EPS is anticipated between $1.47 and $1.52 (including a negative foreign exchange impact of 2 cents).The current Zacks Consensus Estimate of $1.55 is above the guided range.
2019 Guidance
Equifax updated its full-year 2019 guidance for revenues while lowering the same for earnings.
For 2019, revenues are now expected between $3.507 and $3.522 billion compared with the previously guided range of $3.425-$3.525 billion. The current guidance indicates year-over-year local currency growth of 5% and 2% negative impact from foreign exchange movement. The current Zacks Consensus Estimate of $3.48 billion lies below the guided range.
Adjusted EPS is now anticipated between $5.55 per share and $5.60 per share compared with the previously guided range of $5.57-$5.77. The current guidance includes 15 cents of negative impact of foreign exchange movement. The current Zacks Consensus Estimate of $5.59 lies within the guided range.
Zacks Rank & Upcoming Releases
Currently, Equifax carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2019 earnings of key players like Clean Harbors (CLH - Free Report) , Aptiv (APTV - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Oct 30.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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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.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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