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Equifax (EFX) Beats on Q3 Earnings, Trims 2022 EPS Guidance
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Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis.
However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
Revenues in the USIS division came in at $397.4 million, down 9% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $314.4 million were down 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $32.1 million declined 31% year over year. Financial Marketing Services’ revenues came in at $50.9 million, down 8% year over year.
Revenues in the International division totaled $288 million, up 6% year over year on a reported basis and 17% on a local-currency basis. The Asia Pacific revenues of $87.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $80.7 million, up 6% year over year on a reported basis and 24% on a local-currency basis. Latin America revenues of $54 million grew 21% year over year on a reported basis and 34% on a local-currency basis. Canada revenues of $66.2 million were up 9% year over year on a reported basis and 12% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $558.9 million, up 9% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $454.5 million were up 13% year over year. Employer Services revenues of $104.4 million fell 7% year over year.
Operating Results
Adjusted EBITDA in the third quarter of 2022 came in at $404.9 million, up 1% from the year-ago quarter’s level. Adjusted EBITDA margin fell to 32.5% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 34.1% compared with 38.8% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 26.8% compared with 26.7% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 49.5% compared with 53.9% a year ago.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2022 with cash and cash equivalents of $241.7 million compared with $223.6 million at the end of the prior quarter. Long-term debt was $4.82 billion compared with $4.07 billion in the year-ago quarter.
EFX utilized $354.9 million of cash from operating activities while capex was $153 million. Also, Equifax paid out dividends of $47.6 million to its shareholders in the reported quarter.
Fourth-Quarter and Updated 2022 Guidance
For the fourth quarter of 2022, Equifax expects revenues between $1.165 and $1.185 billion. The Zacks Consensus Estimate of $1.21 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.68 lies above the guidance.
For 2022, revenues are now expected between $5.089 billion and $5.109 billion compared with the prior guidance of $5.07-$5.13 billion. The midpoint of the guided range ($5.099) lies below the Zacks Consensus Estimate of $5.10 billion.
Adjusted EPS is now anticipated in the range of $7.49-$7.59 compared with the prior guidance of $7.55-$7.80. The Zacks Consensus Estimate of $7.63 exceeds the updated guidance.
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report third-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Nov 2. The stock has an expected earnings growth rate of 56.9% for the current year.
CCRN's shares have gained 67.8% in the past year. Cross Country Healthcare has a long-term earnings growth rate of 10%.
Waste Management will report quarterly numbers on Oct 26. The stock has an expected earnings growth rate of 17.6% for the current year.
Waste Management has a long-term earnings growth rate of 13.6%.
Republic Services will report results on Oct 27. The stock has an expected earnings growth rate of 14.4% for the current year.
RSG’s shares have gained 2.1% in the past year. Republic Services has a long-term earnings growth rate of 11.3%.
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Equifax (EFX) Beats on Q3 Earnings, Trims 2022 EPS Guidance
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis.
However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Let’s check out the numbers in detail:
Segmental Revenues
Revenues in the USIS division came in at $397.4 million, down 9% from the year-ago quarter’s level. Within the division, Online Information Solutions’ revenues of $314.4 million were down 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $32.1 million declined 31% year over year. Financial Marketing Services’ revenues came in at $50.9 million, down 8% year over year.
Revenues in the International division totaled $288 million, up 6% year over year on a reported basis and 17% on a local-currency basis. The Asia Pacific revenues of $87.1 million fell 2% year over year on a reported basis but grew 6% on a local-currency basis.
Revenues from Europe came in at $80.7 million, up 6% year over year on a reported basis and 24% on a local-currency basis. Latin America revenues of $54 million grew 21% year over year on a reported basis and 34% on a local-currency basis. Canada revenues of $66.2 million were up 9% year over year on a reported basis and 12% on a local-currency basis.
Revenues in the Workforce Solutions segment totaled $558.9 million, up 9% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $454.5 million were up 13% year over year. Employer Services revenues of $104.4 million fell 7% year over year.
Operating Results
Adjusted EBITDA in the third quarter of 2022 came in at $404.9 million, up 1% from the year-ago quarter’s level. Adjusted EBITDA margin fell to 32.5% from 33% in the year-ago quarter.
Adjusted EBITDA margin for USIS was 34.1% compared with 38.8% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 26.8% compared with 26.7% in the prior-year quarter. Workforce Solutions’ adjusted EBITDA margin was 49.5% compared with 53.9% a year ago.
Balance Sheet and Cash Flow
Equifax exited third-quarter 2022 with cash and cash equivalents of $241.7 million compared with $223.6 million at the end of the prior quarter. Long-term debt was $4.82 billion compared with $4.07 billion in the year-ago quarter.
EFX utilized $354.9 million of cash from operating activities while capex was $153 million. Also, Equifax paid out dividends of $47.6 million to its shareholders in the reported quarter.
Fourth-Quarter and Updated 2022 Guidance
For the fourth quarter of 2022, Equifax expects revenues between $1.165 and $1.185 billion. The Zacks Consensus Estimate of $1.21 billion lies above this guidance.
Adjusted EPS is anticipated in the range of $1.45-$1.55. The Zacks Consensus Estimate of $1.68 lies above the guidance.
For 2022, revenues are now expected between $5.089 billion and $5.109 billion compared with the prior guidance of $5.07-$5.13 billion. The midpoint of the guided range ($5.099) lies below the Zacks Consensus Estimate of $5.10 billion.
Adjusted EPS is now anticipated in the range of $7.49-$7.59 compared with the prior guidance of $7.55-$7.80. The Zacks Consensus Estimate of $7.63 exceeds the updated 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.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report third-quarter 2022 numbers soon.
Cross Country Healthcare will release results on Nov 2. The stock has an expected earnings growth rate of 56.9% for the current year.
CCRN's shares have gained 67.8% in the past year. Cross Country Healthcare has a long-term earnings growth rate of 10%.
Waste Management will report quarterly numbers on Oct 26. The stock has an expected earnings growth rate of 17.6% for the current year.
Waste Management has a long-term earnings growth rate of 13.6%.
Republic Services will report results on Oct 27. The stock has an expected earnings growth rate of 14.4% for the current year.
RSG’s shares have gained 2.1% in the past year. Republic Services has a long-term earnings growth rate of 11.3%.