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Equifax (EFX) to Report Q3 Earnings: What's in the Offing?

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Equifax Inc. (EFX - Free Report) is scheduled to report third-quarter 2021 results on Oct 20, after market close.

Let’s check out the expectations in detail.

Q3 Expectations        

The Zacks Consensus Estimate for third-quarter 2021 revenues stands at $1.18 billion, indicating growth of 10.5% 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 $1.16-$1.18 billion.

Segment-wise, the consensus mark for U.S. Information Solutions revenues is pegged at $392 million, implying an improvement of 1.6% from the year-ago quarter’s reported figure. Non-mortgage revenue growth is expected to have boosted the segment.

The consensus estimate for International revenues is pegged at $253 million, indicating growth of 16.1% year over year. The uptick is likely to have come from strength across Asia Pacific, Latin America, Europe and Canadian businesses.

The consensus estimate for Workforce Solutions revenues is pegged at $453 million, indicating growth of 20.2% 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 revenues stands at $85 million, suggesting a decrease of 2.3% 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.

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.72, indicating decline of 8% from the year-ago quarter’s reported figure. The consensus mark meets the higher end of the guided range of $1.62-$1.72.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Equifax this season. 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. But that’s not the case here. 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 -0.33% and a Zacks Rank #2.

Stocks to Consider

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

Avis Budget (CAR - Free Report) has an Earnings ESP of +3.21% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Omnicom (OMC - Free Report) has an Earnings ESP of +8.50% and a Zacks Rank #2.

IQVIA Holdings(IQV - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2.

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