Equifax Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y

Equifax Inc. EFX has reported impressive second-quarter 2025 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.EFX’s adjusted earnings were $2 per share, surpassing the Zacks Consensus Estimate by 4.2% and increasing 9.9% from the year-ago quarter. Total revenues of $1.5 billion beat the consensus estimate by 1.5% and increased 7.4% on a year-over-year basis.Equifax shares gained 1.8% in the year-to-date period compared with the 9.7% drop of the industry and  6.5% growth 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 $662.1 million, rising 8% from the year-ago quarter. The metric surpassed our estimation of $652.8 million. Within the segment, Verification Services’ revenues of $567.1 million increased 10% from the year-ago quarter. Employer Services’ revenues of $95 million dropped 2% on a year-over-year basis.The USIS segment’s revenues were $521.5 million, up 9% from the year-ago quarter and beat our estimated figure of $509.2 million. Within the segment, Online Information Solutions’ revenues of $457.8 million rose 9% year over year. Financial Marketing Services’ revenues were $63.7 million, increasing 6% from the year-ago quarter.Revenues in the International division amounted to $353.4 million, up 4% and 6% year over year on a reported and local-currency basis, respectively. The metric missed our estimation of $361.3 million.Latin America’s revenues of $99.6 million increased 2% from the year-ago quarter on a reported basis and 11% on a local-currency basis. Revenues from Europe amounted to $99.2 million, up 12% on a reported basis and 6% on a local-currency basis. Revenues from the Asia Pacific were $85.3 million, increasing 1% from the year-ago quarter on a reported basis and 4% on a local-currency basis. Canada’s revenues of $69.3 million were flat with the year-ago quarter on a reported basis and gained 1% on a local-currency basis.Equifax’s Operating ResultsAdjusted EBITDA in the second quarter of 2025 amounted to $499.3 million, indicating 9.1% growth on a year-over-year basis. The adjusted EBITDA margin was 32.5%, up 50 basis points from the year-ago quarter.Workforce Solutions’ adjusted EBITDA margin was 53.3% compared with 52.8% in a year-ago quarter. The adjusted EBITDA margin for the USIS division was 35% compared with 33.2% in the second quarter of 2024. The adjusted EBITDA margin for the international segment was 26.4% in comparison with 25.6% in the year-ago quarter.EFX’s Balance Sheet & Cash FlowEquifax exited the second quarter with cash and cash equivalents of $189 million compared with $195.2 million at the end of the first quarter of 2025. The company has a long-term debt of $4.1 billion compared with $4.3 billion in the preceding quarter.Cash generated by operating activities amounted to $361.1 million, whereas capital expenditure totaled $122.2 million. The company distributed $62 million as dividends in the quarter.Equifax’s Q3 & 2025 OutlookFor the third quarter of 2025, the company raised its revenue expectation to $1.505-$1.535 billion from the preceding quarter’s view of $1.495-$1.525 billion. The mid-point ($1.52 billion) of the guided range is higher than the Zacks Consensus Estimate of $1.51 billion. EFX hiked the adjusted EPS outlook to $1.87-$1.97 from the preceding quarter’s view of $1.85-$1.95. The mid-point ($1.92) of the guided range is in line with the Zacks Consensus Estimate.For 2025, Equifax has raised its revenue guidance to $5.97-$6.04 billion from the preceding quarter’s view of $5.91-$6.03 billion. The mid-point ($6.01 billion) of the guided range meets the Zacks Consensus Estimate. The company raised adjusted EPS to $7.33-$7.67 from $7.25-$7.65 provided in the preceding quarter. The mid-point ($7.5) of the guided range is lower than the Zacks Consensus Estimate for earnings of $7.62 per share.Equifax carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.Earnings SnapshotFactSet FDS reported the results for the third quarter of fiscal 2025.FDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.Paychex, Inc. PAYX posted impressive fourth-quarter fiscal 2025 results.PAYX’s fiscal fourth-quarter earnings of $1.19 per share beat the Zacks Consensus Estimate by a slight margin and increased 6.3% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and gained 10% from the year-ago quarter.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Paychex, Inc. (PAYX): Free Stock Analysis Report Equifax, Inc. (EFX): Free Stock Analysis Report FactSet Research Systems Inc. (FDS): 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