Equifax Inc. (EFX Quick QuoteEFX - Free Report) reported better-than-expected fourth-quarter 2021 results.

Adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 1.7% but declined 8% on a year-over-year basis. The reported figure exceeded the guided range of $1.72-$1.82. 

Revenues of $1.25 billion outpaced the consensus estimate by 0.4% and improved 12% year over year on a reported basis as well as on a local-currency basis. The reported figure met the higher end of the guided range of $1.23-$1.25 billion.

The company reported its eighth consecutive quarter of solid double-digit revenue growth. The uptick was driven by strength across the company’s Workforce Solutions, U.S. Information Solutions (“USIS”) non-mortgage market and International revenues. The company has been executing its EFX2023 strategy, leveraging the EFX Cloud to drive new products, innovation and growth.

Over the past year, shares of Equifax have gained 35.9%, outperforming the 22.7% decline of the industry it belongs to and 15.6% growth of the Zacks S&P 500 composite.

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Let’s check out the numbers in detail.

Segmental Revenues

Revenues in the USIS division came in at $434 million, flat with the year-ago quarter. Within the division, Online Information Solutions’ revenues of $313.9 million were flat year over year. Mortgage Solutions’ revenues of $40.7 million declined 19% year over year. Financial Marketing Services’ revenues came in at $79.4 million, up 14% year over year.

Revenues in the International division totaled $287.6 million, up 6% year over year on a reported basis as well as on a local-currency basis. Asia Pacific revenues of $88.4 million grew 9% year over year on a reported basis as well as on a local-currency basis. Revenues from Europe came in at $90.3 million, flat year over year on a reported basis as well as on a local-currency basis. Latin America revenues of $45.3 million grew 6% year over year on a reported basis and 15% on a local-currency basis. Canada revenues of $63.6 million improved 9% year over year on a reported basis and 6% on a local-currency basis.

Revenues in the Workforce Solutions segment totaled $531.6 million, up 29% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $426.6 million were up 29% year over year. Employer Services revenues of $105 million grew 28% year over year.

Operating Results

Adjusted EBITDA in the fourth quarter of 2021 came in at $403.4 million, down 4.5% from the year-ago quarter. Adjusted EBITDA margin fell to 32.2% from 37.8% in the year-ago quarter.

Adjusted EBITDA margin for USIS was 39.4% compared with 41.6% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 29.9% compared with 33.2% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 48.4% compared with 55.8% a year ago.

Balance Sheet and Cash Flow

Equifax exited fourth-quarter 2021 with cash and cash equivalents of $224.7 million compared with $2.03 billion at the end of the prior quarter. Long-term debt was $4.47 billion compared with $4.96 billion at the end of the prior quarter.

The company generated $385.3 million of cash from operating activities while capex was $136.1 million. Also, Equifax paid out dividends of $47.4 million to shareholders in the reported quarter.

First-Quarter and Full-Year 2022 Guidance

For the first quarter of 2022, Equifax expects revenues between $1.32 and $1.34 billion. The Zacks Consensus Estimate of $1.30 billion lies below the guidance.

Adjusted EPS is anticipated in the range of $2.08-$2.18. The Zacks Consensus Estimate of $2.14 lies within the guidance.

For full-year 2022, revenues are expected between $5.25 and $5.35 billion. The Zacks Consensus Estimate of $5.34 billion lies within the guidance.

Adjusted EPS is anticipated in the range of $8.50-$8.80. The Zacks Consensus Estimate of $8.80 met the higher end of the guidance.

Currently, Equifax carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Robert Half International (RHI Quick QuoteRHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.

Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.

Automatic Data Processing (ADP Quick QuoteADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results.

ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.

Rollins (ROL Quick QuoteROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.

Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.