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Don't Overlook Equifax (EFX) International Revenue Trends While Assessing the Stock

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Have you assessed how the international operations of Equifax (EFX - Free Report) performed in the quarter ended June 2025? For this credit reporting company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

In our recent assessment of EFX's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter amounted to $1.54 billion, showing rise of 7.4%. We will now explore the breakdown of EFX's overseas revenue to assess the impact of its international operations.

Decoding EFX's International Revenue Trends

During the quarter, Asia Pacific contributed $85.3 million in revenue, making up 5.55% of the total revenue. When compared to the consensus estimate of $86.43 million, this meant a surprise of -1.31%. Looking back, Asia Pacific contributed $79.7 million, or 5.53%, in the previous quarter, and $84.6 million, or 5.91%, in the same quarter of the previous year.

Latin America accounted for 6.48% of the company's total revenue during the quarter, translating to $99.6 million. Revenues from this region represented a surprise of -3.26%, with Wall Street analysts collectively expecting $102.96 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $94.2 million (6.53%) and $97.3 million (6.80%) to the total revenue, respectively.

Of the total revenue, $99.2 million came from Europe during the last fiscal quarter, accounting for 6.45%. This represented a surprise of +7.99% as analysts had expected the region to contribute $91.86 million to the total revenue. In comparison, the region contributed $86.6 million, or 6.01%, and $88.2 million, or 6.17%, to total revenue in the previous and year-ago quarters, respectively.

Canada generated $69.3 million in revenues for the company in the last quarter, constituting 4.51% of the total. This represented a surprise of -0.14% compared to the $69.4 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $63 million (4.37%), and in the year-ago quarter, it contributed $69.2 million (4.84%) to the total revenue.

Projected Revenues in Foreign Markets

Wall Street analysts expect Equifax to report a total revenue of $1.52 billion in the current fiscal quarter, which suggests an increase of 5.7% from the prior-year quarter. Revenue shares from Asia Pacific, Latin America, Europe and Canada are predicted to be 5.9%, 6.8%, 6.5% and 4.4%, corresponding to amounts of $89.42 million, $103.87 million, $98.71 million and $66.3 million, respectively.

For the full year, a total revenue of $6.01 billion is expected for the company, reflecting an increase of 5.7% from the year before. The revenues from Asia Pacific, Latin America, Europe and Canada are expected to make up 5.7%, 6.9%, 6.4% and 4.4% of this total, corresponding to $342.43 million, $411.27 million, $383.08 million and $266.85 million respectively.

In Conclusion

The dependency of Equifax on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Equifax, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of Equifax's Recent Stock Market Performance

Over the past month, the stock has seen a decline of 3.9% in its value, whereas the Zacks S&P 500 composite has posted an increase of 4.9%. The Zacks Business Services sector, Equifax's industry group, has ascended 1.4% over the identical span. In the past three months, there's been a decline of 6.8% in the company's stock price, against a rise of 16% in the S&P 500 index. The broader sector has increased by 6.6% during this interval.

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