Equifax Q1 Earnings & Revenues Surpass Estimates, Increase Y/Y

Equifax Inc. EFX has reported impressive first-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.EFX’s adjusted earnings were $1.53 per share, outpacing the Zacks Consensus Estimate by 9.3% and increasing 2% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by 1.9% and grew 3.8% on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Equifax shares have declined 19.8% over the past three months compared with the 18.5% dip of the industry and the 15.8% fall of the Zacks S&P 500 composite.Equifax, Inc. Price, Consensus and EPS Surprise  Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. QuoteSegmental Information for EFXRevenues in the Workforce Solutions segment totaled $618.6 million, rising 3% from the year-ago quarter and surpassing our projection of $605.1 million. Within the segment, Verification Services’ revenues of $502.2 million increased 5% from the year-ago quarter. Employer Services’ revenues of $116.4 million moved down 8% on a year-over-year basis.The USIS segment’s revenues were $499.9 million, which gained 7% from the year-ago quarter and beat our estimated figure of $476.4 million. Within the segment, Online Information Solutions’ revenues of $448.1 million rose 7% year over year. Financial Marketing Services’ revenues were $51.8 million, increasing 10% from the year-ago quarter.Revenues in the International division amounted to $323.5 million, up 1% and 7% year over year on a reported and local-currency basis, respectively. The metric missed our projection of $338.8 million.Latin America’s revenues of $94.2 million increased 3% from the year-ago quarter on a reported basis and 16% on a local-currency basis. Revenues from Europe amounted to $86.6 million, flat year over year on a reported and 1% on a local-currency basis. Revenues from the Asia Pacific were $79.7 million, increasing 2% from the year-ago quarter on a reported basis and 7% on a local-currency basis. Canada’s revenues of $63 million moved down 4% from the year-ago quarter on a reported basis but gained 2% on a local-currency basis.Equifax’s Operating ResultsAdjusted EBITDA in the first quarter of 2025 amounted to $423.1 million, indicating a 4.5% increase on a year-over-year basis. The adjusted EBITDA margin was 29.3%, up 20 basis points from the year-ago quarter.Workforce Solutions’ adjusted EBITDA margin was 50.1% compared with 51.1% in a year-ago quarter. The adjusted EBITDA margin for the USIS division was 34.1% compared with 32.7% in the first quarter of 2024. The adjusted EBITDA margin for the international segment was 24.1% in comparison with 24.3% in the year-ago quarter.EFX’s Balance Sheet & Cash FlowEquifax exited the first quarter with cash and cash equivalents of $195.2 million compared with $169.9 million at the end of the fourth quarter of 2024. The company has a long-term debt of $4.3 billion, flat with the preceding quarter.Cash generated from operating activities amounted to $223.9 million, whereas capital expenditure totaled $107.2 million. The company distributed $48.5 million as dividends in the quarter.Equifax’s Q2 & 2025 OutlookFor the second quarter of 2025, the company expects revenues of $1.49-$1.52 billion. The mid-point ($1.50 billion) of the guided range is in line with the Zacks Consensus Estimate. EFX anticipates adjusted EPS of $1.85-$1.95. The mid-point ($1.90) of the guided range is lower than the Zacks Consensus Estimate for earnings of $1.93.For 2025, Equifax has raised its revenue guidance to $5.91-$6.03 billion from the preceding quarter’s view of $5.89-$6.01 billion. The mid-point ($5.97 billion) of the guided range meets the Zacks Consensus Estimate. The company anticipates an adjusted EPS of $7.25-$7.65. The mid-point ($7.45) of the guided range is lower than the Zacks Consensus Estimate for earnings of $7.56 per share.Equifax carries a Zacks Rank #4 (Sell) at present.You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.Earnings SnapshotABM ABM reported impressive first-quarter fiscal 2025 results.ABM’s EPS (excluding 19 cents from non-recurring items) was 87 cents, which outpaced the Zacks Consensus Estimate by 11.5% and gained 1.2% year over year. Total revenues of $2.1 billion surpassed the consensus mark by a slight margin and increased 2.2% from the year-ago quarter.Accenture plc ACN reported mixed second-quarter fiscal 2025 results.ACN’s earnings were $2.82 per share, missing the Zacks Consensus Estimate by a slight margin. The metric increased 1.8% from the year-ago quarter. Total revenues of $16.7 billion beat the consensus estimate by a slight margin but gained 5.4% on a year-over-year basis.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Equifax, Inc. (EFX): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks