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Equifax has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one instance. The average surprise is 2.1%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $1.31 billion, up 9.5% from the year-ago actual figure. The uptick is likely to have been due to the acquisition of BVS and cloud transformation initiatives.
The consensus estimate for earnings per share (EPS) is pegged at $1.75, indicating 15.1% year-over-year growth. The increasing bottom line is likely to have been due to the spending reduction programs.
Segmental Information
Our estimate for fourth-quarter 2023 revenues from U.S. Information Solutions (USIS) is currently pegged at $422.2 million, up 4% from the fourth-quarter 2022 reported figure. Total International revenues are expected to grow 20.4% from the year-ago figure to $341.5 million. Revenues from Workforce Solutions are expected to grow 8.4% on a year-over-year basis. Our estimate is currently pegged at $551.2 million. Non-mortgage growth and strategic acquisition of BVS are likely to have benefited the company.
Adjusted EBITDA is expected to have benefited from the strong non-mortgage revenue performance. USIS and International segments are expected to witness a gain of 3.8% and 40.4% to $148.6 million and $102.9 million, respectively. The adjusted EBITDA for Workplace Solutions is likely to grow to $278.2 million, which is up 17.1% from the year-ago reported figure.
What our Model Says
Our proven model does not conclusively predict an earnings beat for EFX this time around. 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 before they’re reported with our Earnings ESP Filter.
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.
Rollins (ROL - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $750.09 million, indicating growth of 13.4%. For earnings, the consensus mark is pegged at 21 cents per share, up 23.5% from the year-ago quarter. The company beat the consensus estimate in three of the past four quarters and matched on the other instance. It has an average surprise of 7.2%.
ROL currently carries an Earnings ESP of +2.44% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 14.
Fiserv (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $4.69 billion, indicating growth of 7.5%. For earnings, the consensus mark is pegged at $2.15 per share, up 12.6% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has an average surprise of 0.58%.
FI currently carries an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 6.
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Equifax (EFX) to Report Q4 Earnings: What's in the Offing?
Equifax Inc. (EFX - Free Report) is scheduled to release its fourth-quarter 2023 results on Feb 7, after market close.
Equifax has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one instance. The average surprise is 2.1%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $1.31 billion, up 9.5% from the year-ago actual figure. The uptick is likely to have been due to the acquisition of BVS and cloud transformation initiatives.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
The consensus estimate for earnings per share (EPS) is pegged at $1.75, indicating 15.1% year-over-year growth. The increasing bottom line is likely to have been due to the spending reduction programs.
Segmental Information
Our estimate for fourth-quarter 2023 revenues from U.S. Information Solutions (USIS) is currently pegged at $422.2 million, up 4% from the fourth-quarter 2022 reported figure. Total International revenues are expected to grow 20.4% from the year-ago figure to $341.5 million. Revenues from Workforce Solutions are expected to grow 8.4% on a year-over-year basis. Our estimate is currently pegged at $551.2 million. Non-mortgage growth and strategic acquisition of BVS are likely to have benefited the company.
Adjusted EBITDA is expected to have benefited from the strong non-mortgage revenue performance. USIS and International segments are expected to witness a gain of 3.8% and 40.4% to $148.6 million and $102.9 million, respectively. The adjusted EBITDA for Workplace Solutions is likely to grow to $278.2 million, which is up 17.1% from the year-ago reported figure.
What our Model Says
Our proven model does not conclusively predict an earnings beat for EFX this time around. 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 before they’re reported with our Earnings ESP Filter.
Equifax has an Earnings ESP of -0.76% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
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.
Rollins (ROL - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $750.09 million, indicating growth of 13.4%. For earnings, the consensus mark is pegged at 21 cents per share, up 23.5% from the year-ago quarter. The company beat the consensus estimate in three of the past four quarters and matched on the other instance. It has an average surprise of 7.2%.
ROL currently carries an Earnings ESP of +2.44% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 14.
Fiserv (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $4.69 billion, indicating growth of 7.5%. For earnings, the consensus mark is pegged at $2.15 per share, up 12.6% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has an average surprise of 0.58%.
FI currently carries an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 6.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.