ATLANTA - Equifax Inc . (NYSE: NYSE:EFX) reported a second-quarter earnings beat but offered weaker-than-expected guidance for the third quarter and full year, sending shares down 5.49%.
The data analytics and technology company posted adjusted earnings per share (EPS) of $1.82 for the quarter, exceeding analysts' expectations of $1.74. Revenue for the quarter was also higher than anticipated, coming in at $1.43 billion against the consensus estimate of $1.42 billion, marking a solid 9% increase from the same period last year.
Despite the strong second-quarter performance, Equifax's guidance for the third quarter and the full year fell short of Wall Street's forecasts. The company is projecting third-quarter EPS in the range of $1.75 to $1.85, below the analyst consensus of $2.01. Revenue guidance for the same period is set at $1.425 to $1.445 billion, also below the expected $1.458 billion.
For the full year of 2024, Equifax anticipates EPS between $7.22 and $7.47, with the midpoint below the consensus of $7.38. Revenue expectations are between $5.69 to $5.75 billion, with the midpoint slightly above the analyst estimate of $5.723 billion.
Equifax CEO Mark W. Begor highlighted the company's strong performance amid challenging market conditions, particularly in the mortgage sector. "Equifax had a strong second quarter against our EFX2026 strategic priorities in a challenging mortgage market delivering revenue of $1.430 billion, up a strong 9%," said Begor. He also noted that non-mortgage revenue, which constituted about 80% of Equifax's revenue in the second quarter, delivered robust local currency revenue growth of 13%.
The company's full-year 2024 guidance reflects an expected decline of about 11% in U.S. mortgage credit inquiries, which is consistent with current run-rates and compares to a 34% decrease in 2023. Equifax's adjusted EBITDA and adjusted EPS continue to benefit from organic revenue growth and additional cost savings from Cloud spending reduction plans.
Equifax operates globally, providing data, analytics, and technology services to financial institutions, companies, employers, and government agencies, helping them make critical decisions with greater confidence. The company remains committed to its long-term 8-12% revenue growth framework, which is expected to deliver higher margins and free cash flow.
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