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Is a Beat in the Cards for Equifax (EFX) in Q1 Earnings?

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Equifax Inc. (EFX - Free Report) is scheduled to report first-quarter 2021 results on Apr 21, after market close.

Let’s check out the expectations in detail.

Q1 Expectations        

The Zacks Consensus Estimate for first-quarter 2021 revenues stands at $1.12 billion, indicating growth of 17.4% from the year-ago period’s reported figure. The upbeat is likely to have been driven by strength in U.S. Information Solutions, International and Workforce Solutions segments. The consensus mark lies within the guided range of $1.11-$1.13 billion.

Segment-wise, the consensus mark for U.S. Information Solutions segment revenues is pegged at $389 million, implying an improvement of 13.4% from the year-ago quarter’s reported figure. Mortgage and non-mortgage revenue growth is expected to have boosted the segment.

The consensus estimate for International segment revenues is pegged at $233 million, indicating growth of 7.9% year over year. The uptick is likely to have come from strength across Asia Pacific, Australia, Europe and Canadian businesses.

The consensus estimate for Workforce Solutions segment revenues is pegged at $412 million, indicating growth of 36.4% from the year-ago quarter’s reported figure. Strength across Verification Services and Employer Services revenues is likely to have aided the segment.

The consensus mark for Global Consumer Solutions segment revenues stands at $84 million, suggesting a decrease of 13.4% from the year-ago quarter’s reported figure. Downfall in the company’s U.S. lead generation partner businesses might have weighed on the segment.

Improvement in operational efficiency is likely to have benefited the bottom line, the Zacks Consensus Estimate for which is pegged at $1.52, indicating growth of 8.6% from the year-ago quarter’s reported figure. The consensus mark lies within the guided range of $1.45-$1.55 cents.

What Our Model Says

Our proven model predicts an earnings beat for Equifax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Equifax has an Earnings ESP of +0.44% and a Zacks Rank #3.

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. price-eps-surprise | Equifax, Inc. Quote

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on first-quarter 2021 earnings.

Omnicom (OMC - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

S&P Global(SPGI - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #3.

Fiserv(FISV - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3.

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Fiserv, Inc. (FISV) - free report >>

Equifax, Inc. (EFX) - free report >>

Omnicom Group Inc. (OMC) - free report >>

S&P Global Inc. (SPGI) - free report >>