Equifax Inc. ( EFX Quick Quote EFX - Free Report) reported better-than-expected first-quarter 2021 results.
Adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. The reported figure exceeded the guided range of $1.45-$1.55.
Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis. The reported figure exceeded the guided range of $1.11 -$1.13 billion.
Over the past year, shares of Equifax have gained 58.1%, outperforming the 31.3% surge of the
industry it belongs to and 50.7% rally of the Zacks S&P 500 composite.
Let’s check out the numbers in detail.
Revenues in the U.S. Information Solutions division came in at $409.4 million, up 19% from the year-ago quarter. Within the division, Online Information Solutions’ revenues of $302 million were up 19% year over year. Mortgage Solutions’ revenues of $54.1 million improved 27% year over year. Financial Marketing Services’ revenues came in at $53.3 million, up 12% year over year.
Revenues in the International division totaled $241.3 million, up 12% year over year on a reported and 3% on a local-currency basis. Asia Pacific revenues of $86.9 million grew 25% year over year on a reported basis and 7% on a local-currency basis. Revenues from Europe came in at $68.7 million, up 3% year over year on a reported basis but down 5% on a local-currency basis. Latin Americarevenues of $41.6 million declined 4% year over year on a reported basis but were up 1% on a local-currency basis. Canadarevenues of $44.1 million improved 20% year over year on a reported basis and 13% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $480.9 million, up 59% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $385.2 million were up 75% year over year. Employer Services revenues of $95.7 million were up 17% year over year.
Revenues in the Global Consumer Solutions segment amounted to $81.4 million, down 16% year over year on a reported basis and 17% on a local-currency basis.
Adjusted EBITDA in the first quarter of 2021 came in at $431.3 million compared with $316.5 million in the year-ago quarter. Adjusted EBITDA margin rose to 35.6% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 42.9% compared with 44.7% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 28.2% compared with 27.9% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 59.3% compared with 51.5% a year ago. Adjusted EBITDA margin for Global Consumer Solutions was 24.6% compared with 23.1% in the year-ago quarter.
Balance Sheet and Cash Flow
Equifax exited first-quarter 2021 with cash and cash equivalents of $765.9 million compared with $1.68 billion at the end of the prior quarter. Long-term debt was $3.28 billion, flat sequentially.
The company generated $143.4 million of cash from operating activities and capex was $113 million. Also, Equifax paid out dividends of $47.5 million to shareholders in the reported quarter.
Second-Quarter and Full-Year 2021 Guidance
For the second quarter of 2021, Equifax expects revenues between $1.14 and $1.16 billion. The Zacks Consensus Estimate of $1.07 billion lies below the guidance.
Adjusted EPS is anticipated in the range of $1.60-$1.70. The Zacks Consensus Estimate of $1.52 lies below the guidance.
For full-year 2021, revenues are expected between $4.58 and $4.68 billion compared with the prior guidance of $4.35-$4.45 billion. The Zacks Consensus Estimate of $4.45 billion lies below the guidance.
Adjusted EPS is anticipated in the range of $6.75-$7.05 compared with the prior guidance of $6.20-$6.50. The Zacks Consensus Estimate of $6.42 lies below the guidance.
Currently, Equifax carries a Zacks Rank #3 (Hold). You can see
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