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Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Revenues in the Workforce Solutions segment totaled $596.3 million, down 8% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $455.8 million were down 11% year over year. Employer Services’ revenues of $140.5 million were up 4% year over year.
Revenues in the USIS segment were $421.7 million, down 3% from the year-ago quarter’s level. Within the segment, Online Information Solutions’ revenues of $341 million were down 1% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $33.3 million declined 23% year over year. Financial Marketing Services’ revenues were $47.4 million, increasing 4% year over year.
Revenues in the International division totaled $284 million, gaining 1% and 9% year over year on a reported basis and a local-currency basis, respectively. Asia Pacific revenues of $84.6 million increased 4% from the year-ago reported figure on a reported basis and 11% on a local-currency basis.
Revenues from Europe amounted to $75.7 million, down 12% year over year on a reported basis and 4% on a local-currency basis. Latin America revenues of $55.3 million grew 17% year over year on a reported basis and 32% on a local-currency basis. Canada revenues of $63.1 million were up 2% year over year on a reported basis and 8% on a local-currency basis.
Operating Results
Adjusted EBITDA in the first quarter of 2023 totaled $379.6 million, down 22% from the year-ago quarter’s level. Adjusted EBITDA margin fell 630 basis points from the year-ago reported figure to 29.2%.
Workforce Solutions’ adjusted EBITDA margin was 50.4% compared with 54.6% a year ago. Adjusted EBITDA margin for the USIS division was 32.6% compared with 39.3% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 25.8% compared with 29.9% in the prior-year quarter.
Balance Sheet & Cash Flow
EFX exited the first quarter with cash and cash equivalents of $232.5 million. Equifax generated $150.9 million in cash from operating activities in the quarter. The company has a long-term debt of $4.99 billion compared with $4.82 billion in the year-ago reported figure.
Capital expenditures were $158.3 million. During the reported quarter, the company paid $47.9 million through dividends.
Q2 and 2023 outlook
For the second quarter of 2023, revenues are expected to be in the $1.31-1.33 billion band. The Zacks Consensus Estimate for revenues is pegged at $1.28 billion, which is below the guided range. Adjusted EPS is expected to be in the range of $1.6-$1.7, higher than the Zacks Consensus Estimate of earnings of $1.37.
For 2023, revenues are expected in the range of $5.27-$5.37 billion. The Zacks Consensus Estimate of $5.33 billion lies above the mid-point ($5.32 billion) of the guided range. Adjusted EPS is expected to be in the range of $7.05-$7.35. The consensus mark for earnings is pegged at $7.19, which lies below the midpoint ($7.20) of the range.
Equifax currently carries a Zacks Rank #4 (Sell).
Upcoming Earnings That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for the bottom line is pegged at 88 cents per share, up 7.3% from the year-ago figure. The consensus mark for revenues is pegged at $1.9 billion, up 15.4% from the figure reported a year ago. WCN had an average surprise of 3.53% in the previous four quarters.
Waste Management (WM - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on Apr 26, after market close.
The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, down 2.3% from the year-ago figure. The consensus mark for revenues is pegged at $4.84 billion, up 3.9% from the prior-year figure. WM had an average surprise of 4.7% in the previous four quarters.
Aptiv (APTV - Free Report) currently has an Earnings ESP of +4.29% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on May 4, before market open.
The Zacks Consensus Estimate for the bottom line is pegged at 86 cents per share, up 36.5% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.51 billion, up 7.9% from the prior-year reported figure. APTV had a negative surprise of 8.7%, on average, in the previous four quarters.
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Equifax's (EFX) Q1 Earnings Surpass Estimates, Decline Y/Y
Equifax Inc. (EFX - Free Report) ) reported better-than-expected first-quarter 2023 results.
Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure.
Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Segmental Information
Revenues in the Workforce Solutions segment totaled $596.3 million, down 8% from the year-ago quarter’s figure. Within the segment, Verification Services’ revenues of $455.8 million were down 11% year over year. Employer Services’ revenues of $140.5 million were up 4% year over year.
Revenues in the USIS segment were $421.7 million, down 3% from the year-ago quarter’s level. Within the segment, Online Information Solutions’ revenues of $341 million were down 1% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $33.3 million declined 23% year over year. Financial Marketing Services’ revenues were $47.4 million, increasing 4% year over year.
Revenues in the International division totaled $284 million, gaining 1% and 9% year over year on a reported basis and a local-currency basis, respectively. Asia Pacific revenues of $84.6 million increased 4% from the year-ago reported figure on a reported basis and 11% on a local-currency basis.
Revenues from Europe amounted to $75.7 million, down 12% year over year on a reported basis and 4% on a local-currency basis. Latin America revenues of $55.3 million grew 17% year over year on a reported basis and 32% on a local-currency basis. Canada revenues of $63.1 million were up 2% year over year on a reported basis and 8% on a local-currency basis.
Operating Results
Adjusted EBITDA in the first quarter of 2023 totaled $379.6 million, down 22% from the year-ago quarter’s level. Adjusted EBITDA margin fell 630 basis points from the year-ago reported figure to 29.2%.
Workforce Solutions’ adjusted EBITDA margin was 50.4% compared with 54.6% a year ago. Adjusted EBITDA margin for the USIS division was 32.6% compared with 39.3% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 25.8% compared with 29.9% in the prior-year quarter.
Balance Sheet & Cash Flow
EFX exited the first quarter with cash and cash equivalents of $232.5 million. Equifax generated $150.9 million in cash from operating activities in the quarter. The company has a long-term debt of $4.99 billion compared with $4.82 billion in the year-ago reported figure.
Capital expenditures were $158.3 million. During the reported quarter, the company paid $47.9 million through dividends.
Q2 and 2023 outlook
For the second quarter of 2023, revenues are expected to be in the $1.31-1.33 billion band. The Zacks Consensus Estimate for revenues is pegged at $1.28 billion, which is below the guided range. Adjusted EPS is expected to be in the range of $1.6-$1.7, higher than the Zacks Consensus Estimate of earnings of $1.37.
For 2023, revenues are expected in the range of $5.27-$5.37 billion. The Zacks Consensus Estimate of $5.33 billion lies above the mid-point ($5.32 billion) of the guided range. Adjusted EPS is expected to be in the range of $7.05-$7.35. The consensus mark for earnings is pegged at $7.19, which lies below the midpoint ($7.20) of the range.
Equifax currently carries a Zacks Rank #4 (Sell).
Upcoming Earnings That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Waste Connections (WCN - Free Report) currently has an Earnings ESP of +1.93% and a Zacks Rank #3 (Hold). It is scheduled to report its first-quarter 2023 results on Apr 26, after market close. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the bottom line is pegged at 88 cents per share, up 7.3% from the year-ago figure. The consensus mark for revenues is pegged at $1.9 billion, up 15.4% from the figure reported a year ago. WCN had an average surprise of 3.53% in the previous four quarters.
Waste Management (WM - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on Apr 26, after market close.
The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, down 2.3% from the year-ago figure. The consensus mark for revenues is pegged at $4.84 billion, up 3.9% from the prior-year figure. WM had an average surprise of 4.7% in the previous four quarters.
Aptiv (APTV - Free Report) currently has an Earnings ESP of +4.29% and a Zacks Rank of 3. It is scheduled to report its first-quarter 2023 results on May 4, before market open.
The Zacks Consensus Estimate for the bottom line is pegged at 86 cents per share, up 36.5% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.51 billion, up 7.9% from the prior-year reported figure. APTV had a negative surprise of 8.7%, on average, in the previous four quarters.