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Adjusted earnings of $2 per share beat the Zacks Consensus Estimate by 9.3% and improved 30.7% on a year-over-year basis. The reported figure exceeded the guided range of $1.40-$1.50.
Revenues of $1.12 billion outpaced the consensus estimate by 3% and improved 23.5% year over year on a reported basis as well as on a local-currency basis. The reported figure lies within the guided range of $990 million -$1.41 billion.
Over the past year, shares of Equifax have gained 19.4% against 3.1% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 18.6% in the said time frame.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the U.S. Information Solutions division came in at $387.5 million, up 17% from the year-ago quarter. Within the division, Online Information Solutions’ revenues of $267.5 million were up 18% year over year. Mortgage Solutions’ revenues of $50.4 million improved 55% year over year. Financial Marketing Services’ revenues came in at $69.6 million, down 2% year over year. The segment contributed 35% of total revenues.
Revenues in the International division totaled $247.5 million, up 5% year over year on a reported and 3% on a local-currency basis. Asia Pacific revenues of $81.4 million grew 10% year over year on a reported basis and 4% on a local-currency basis. Revenues from Europe came in at $82.5 million, up 8% year over year on a reported basis and 4% on a local-currency basis. Latin America revenues of $42.5 million declined 8% year over year on a reported basis and 1% on a local-currency basis. Canada revenues of $41.1 million improved 4% year over year on a reported basis and 3% on a local-currency basis. International division contributed 22% to total revenues.
Revenues in the Workforce Solutions segment totaled $406.5 million, up 62% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $330 million were up 70% year over year. Employer Services revenues of $76.5 million were up 35% year over year. Workforce Solutions contributed 36% to total revenues.
Revenues in the Global Consumer Solutions segment amounted to $77 million, down 13% year over year on both reported and local-currency basis. The segment contributed 7% to total revenues.
Operating Results
Adjusted EBITDA in the fourth quarter of 2020 came in at $422.4 million compared with $322.7 million in the year-ago quarter. Adjusted EBITDA margin rose to 37.8% from 35.6% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 43.5% compared with 45.1% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 34% compared with 36.4% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 56.2% compared with 47% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 20.8% compared with 26.9% in the year-ago quarter.
Equifax exited fourth-quarter 2020 with cash and cash equivalents of $1.68 billion compared with $1.54 billion at the end of the prior quarter. Long-term debt was $3.28 billion, flat sequentially.
The company generated $297.2 million of cash from operating activities and capex was $111.8 million. Also, Equifax paid out dividends of $47.4 million to shareholders in the reported quarter.
First-Quarter and Full-Year 2021 Guidance
For the first quarter of 2021, Equifax expects revenues between $1.11 and $1.13 billion, indicating year-over-year growth of 15.3-17.4%. This includes 1.9% positive foreign exchange impact. The Zacks Consensus Estimate of $1.09 billion lies below the guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.52 lies within the guidance.
For full-year 2021, revenues are expected between $4.35 and $4.45 billion, reflecting year-over-year local currency growth of 5.4-7.8%. This includes 1.5% positive foreign exchange impact. The Zacks Consensus Estimate of $4.37 billion lies within the guidance.
Adjusted EPS is anticipated in the range of $6.20-$6.50. The Zacks Consensus Estimate of $6.49 lies within the guidance.
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
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Equifax (EFX) Surpasses Q4 Earnings & Revenue Estimates
Equifax Inc. (EFX - Free Report) reported better-than-expected fourth-quarter 2020 results.
Adjusted earnings of $2 per share beat the Zacks Consensus Estimate by 9.3% and improved 30.7% on a year-over-year basis. The reported figure exceeded the guided range of $1.40-$1.50.
Revenues of $1.12 billion outpaced the consensus estimate by 3% and improved 23.5% year over year on a reported basis as well as on a local-currency basis. The reported figure lies within the guided range of $990 million -$1.41 billion.
Over the past year, shares of Equifax have gained 19.4% against 3.1% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 18.6% in the said time frame.
Let’s check out the numbers in detail.
Segmental Revenues
Revenues in the U.S. Information Solutions division came in at $387.5 million, up 17% from the year-ago quarter. Within the division, Online Information Solutions’ revenues of $267.5 million were up 18% year over year. Mortgage Solutions’ revenues of $50.4 million improved 55% year over year. Financial Marketing Services’ revenues came in at $69.6 million, down 2% year over year. The segment contributed 35% of total revenues.
Revenues in the International division totaled $247.5 million, up 5% year over year on a reported and 3% on a local-currency basis. Asia Pacific revenues of $81.4 million grew 10% year over year on a reported basis and 4% on a local-currency basis. Revenues from Europe came in at $82.5 million, up 8% year over year on a reported basis and 4% on a local-currency basis. Latin America revenues of $42.5 million declined 8% year over year on a reported basis and 1% on a local-currency basis. Canada revenues of $41.1 million improved 4% year over year on a reported basis and 3% on a local-currency basis. International division contributed 22% to total revenues.
Revenues in the Workforce Solutions segment totaled $406.5 million, up 62% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $330 million were up 70% year over year. Employer Services revenues of $76.5 million were up 35% year over year. Workforce Solutions contributed 36% to total revenues.
Revenues in the Global Consumer Solutions segment amounted to $77 million, down 13% year over year on both reported and local-currency basis. The segment contributed 7% to total revenues.
Operating Results
Adjusted EBITDA in the fourth quarter of 2020 came in at $422.4 million compared with $322.7 million in the year-ago quarter. Adjusted EBITDA margin rose to 37.8% from 35.6% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 43.5% compared with 45.1% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 34% compared with 36.4% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 56.2% compared with 47% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 20.8% compared with 26.9% in the year-ago quarter.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Balance Sheet and Cash Flow
Equifax exited fourth-quarter 2020 with cash and cash equivalents of $1.68 billion compared with $1.54 billion at the end of the prior quarter. Long-term debt was $3.28 billion, flat sequentially.
The company generated $297.2 million of cash from operating activities and capex was $111.8 million. Also, Equifax paid out dividends of $47.4 million to shareholders in the reported quarter.
First-Quarter and Full-Year 2021 Guidance
For the first quarter of 2021, Equifax expects revenues between $1.11 and $1.13 billion, indicating year-over-year growth of 15.3-17.4%. This includes 1.9% positive foreign exchange impact. The Zacks Consensus Estimate of $1.09 billion lies below the guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.52 lies within the guidance.
For full-year 2021, revenues are expected between $4.35 and $4.45 billion, reflecting year-over-year local currency growth of 5.4-7.8%. This includes 1.5% positive foreign exchange impact. The Zacks Consensus Estimate of $4.37 billion lies within the guidance.
Adjusted EPS is anticipated in the range of $6.20-$6.50. The Zacks Consensus Estimate of $6.49 lies within the guidance.
Currently, Equifax carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>