Equifax cuts forecast midpoints despite double-digit quarterly revenue growth

Equifax ($EFX) reported quarterly revenue of $1.693 billion, up 10%, with growth of 9% in local currency. Net income increased 32% to $211.7 million, GAAP earnings per share rose 39% to $1.79 and adjusted earnings increased 11% to $2.26. US mortgage-related revenue grew 15% and non-mortgage revenue increased 8%, showing expansion across both categories during the quarter.

Mortgage-market conditions nevertheless softened late in the period. Equifax reduced the midpoint of its full-year revenue outlook to $6.661 billion and lowered the adjusted earnings-per-share midpoint by $0.04 to $8.50, still within its previous range. The revisions temper an otherwise strong quarterly report: positive year-on-year mortgage revenue does not eliminate the effect of a weaker exit rate. The company’s updated annual figures remain forecasts rather than results already delivered.

Sources:

• Equifax — issuer results and outlook