Back to top

Image: Bigstock

Equifax (EFX) to Report Q4 Earnings: What's in the Offing?

Read MoreHide Full Article

Equifax Inc. (EFX - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 9, after market close.

Let’s check out the expectations in detail.

Q4 Expectations        

The Zacks Consensus Estimate for fourth-quarter 2021 revenues is pegged at $1.25 billion, indicating growth of 11.6% from the year-ago period’s reported figure. The upbeat view is likely to have been driven by strength in the U.S. Information Solutions, International, Workforce Solutions and Global Consumer Solutions segments. The consensus mark meets the higher end of the company’s guided range of $1.23-$1.25 billion.

Segment-wise, the consensus mark for U.S. Information Solutions revenues is pegged at $390 million, implying an improvement of 0.5% from the year-ago quarter’s reported figure. Non-mortgage revenue growth, growth in marketing and debt monitoring products, and strength across banking, insurance, commercial, direct-to-consumer and fraud revenues are expected to have boosted the segment.

The consensus estimate for International revenues is pegged at $258 million, indicating year-over-year growth of 4%. The uptick is likely to have come from strength across the Asia Pacific, Latin America, Europe and Canada businesses.

The consensus estimate for Workforce Solutions revenues is pegged at $518 million, indicating growth of 27.3% 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 $81 million, suggesting growth of 5.2% from the year-ago quarter’s reported figure. 

Declining operating margins and rising expenses are likely to have weighed on the company’s bottom line. The Zacks Consensus Estimate for the same is pegged at $1.81, indicating a decline of 9.5% from the year-ago quarter’s reported figure. The consensus mark lies within the company’s guided range of $1.72-$1.82.

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 +1.05% and a Zacks Rank #4 (Sell).

Equifax, Inc. Price and EPS Surprise

 

Equifax, Inc. Price and EPS Surprise

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

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 their fourth-quarter 2021 earnings:

Genpact (G - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #2. The company will release earnings numbers on Feb 11, before market open. You can see the complete list of today’s Zacks #1 Rank stocks here.

Genpact has an expected earnings growth rate of 9.7% for the current year. The company has a trailing four-quarter earnings surprise of 15.1%, on average.

Genpact’s shares have risen 23.8% in the past year. The company’s long-term earnings growth rate is projected at 14.8%.

Avis Budget (CAR - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #3. The company will release earnings numbers on Feb 14, after market close.

Avis Budget has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 336.5% in the past year. The company has an expected long-term earnings growth rate of 19.4%.

S&P Global (SPGI - Free Report) has an Earnings ESP of +1.33% and a Zacks Rank #3. The company will release earnings numbers on Feb 8, before market open.

S&P Global has an expected earnings growth rate of 7.1% for the current year. The company has a trailing four-quarter earnings surprise of 9.1%, on average.

S&P Global’s shares have surged 25.8% in the past year. The company has an expected long-term earnings growth rate of 12%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in