What You Need to Know Ahead of Equifax’s Earnings Release
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Valued at a market cap of $30.9 billion, Equifax Inc. (EFX) is a global data, analytics, and technology company that engages in helping financial institutions, companies, employers, and government agencies make critical decisions. Based in Atlanta, Georgia, the company operates through Workforce Solutions; U.S. Information Solutions (USIS); and International segments.
The consumer credit reporting agency is expected to unveil its Q1 2025 results on Wednesday, April 16. Ahead of this event, analysts expect EFX to report a profit of $1.42 per share, down 5.3% from $1.50 per share reported in the year-ago quarter. On a positive note, EFX has surpassed Wall Street's bottom-line estimates in each of the past four quarters.
However, for the full fiscal 2025, analysts expect EFX to report EPS of $7.64, up 4.8% from $7.29 reported in fiscal 2024. Moreover, its EPS is anticipated to surge 24.5% year-over-year to $9.51 in fiscal 2026.
Shares of EFX have dropped 9.4% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 3.6% gain during the same time frame. The stock also lagged behind the iShares U.S. Industrials ETF’s (IYJ) marginal gains over the past year.
Despite outperforming Street's bottom-line expectations, Equifax's stock plummeted 8.4% after the release of its mixed Q4 results on Feb. 6. The company reported a solid 17.1% year-over-year growth in adjusted EPS to $2.12, exceeding the consensus estimates by 95 basis points. Despite the ongoing softness in US hiring and mortgage markets, the company delivered a solid 7% year-over-year growth in operating revenues to $1.4 billion. However, it missed the Street's topline expectations.
Furthermore, in fiscal 2025, Equifax expects its revenues to increase by a modest 4.7% year-over-year to $5.95 billion. And due to an expected decline of about 12% in US mortgage hard credit inquiries in the current year, Equifax expects its adjusted EPS to inch up 2.2% year-over-year to $7.45, which unsettled investor confidence.
Analysts' consensus rating on Equifax stock is moderately optimistic, with a "Moderate Buy" rating overall. Out of 21 analysts covering the stock, opinions include 12 "Strong Buys," three "Moderate Buys," and six "Holds." Its mean price target of $286.89 suggests a 23.8% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.