Equifax EFX is scheduled to report fourth-quarter 2024 results on Feb. 6, before market open.

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EFX has a decent earnings surprise history. It has outperformed the Zacks Consensus Estimate in four preceding quarters, with an average of 3.6%.

Equifax, Inc. Price, Consensus and EPS Surprise

EFX’s Q4 Expectations

The Zacks Consensus Estimate for Equifax’s top line is pegged at $1.4 billion, suggesting an 8.6% rise from the year-ago quarter’s actual. An improved segmental performance is anticipated to have aided the top line.

The consensus estimate for earnings per share is pegged at $2.1, hinting at a 16% increase on a year-over-year basis. A strong margin performance is expected to have fueled the bottom line.

Estimates for EFX’s Segments

Revenues from Workforce Solutions are likely to grow 10.2% year over year. Our estimate is pegged at $616.4 million. We anticipate the company’s strategy to acquire complementary companies to have benefited the segment by adding differentiated data assets across EFX and expanding in the $20-billion identify and fraud domain.

Our expectation for fourth-quarter 2024 revenues from U.S. Information Solutions (“USIS”) is pegged at $470 million, implying a 9.9% rise from the year-ago quarter’s reported number. We expect growth in non-mortgage and mortgage revenues due to healthy mortgage activity to have fueled this segment’s revenues.

We anticipate total international revenues to increase 8.5% from the year-ago quarter’s actual to $368.2 million. Robust growth across Latin America and Europe is expected to have driven this segment’s revenues.  

Adjusted EBITDA for the USIS and International segments are likely to witness year-over-year growth of 19.1% and 11.1% to $178.8 million and $117.5 million, respectively. The metric is anticipated to have been driven by strong revenue growth. The adjusted EBITDA for Workplace Solutions is likely to be $318.4 million, up 11.1% from the year-ago quarter’s actual. We expect this segment’s adjusted EBITDA to have been driven by strong verifier revenue growth and continued cost controls.

What Our Model Says About EFX

Our proven model does not predict an earnings beat for Equifax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

EFX has an Earnings ESP of -1.00% and a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

TransUnion TRU: The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $1 billion, indicating year-over-year growth of 7.7%. For earnings, the consensus mark is pegged at 96 cents, suggesting 20% growth from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past four quarters, with an average surprise of 7.3%.

TRU carries an Earnings ESP of +0.27% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its fourth-quarter 2024 results on Feb. 13.

Aptiv PLC APTV: The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $4.9 billion, indicating a marginal decline from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.7 per share, suggesting an 18.6% increase from the year-ago quarter’s reported number. Aptiv surpassed the consensus estimate in the past four quarters, with an average beat of 10.7%.

APTV has an Earnings ESP of +2.48% and a Zacks Rank of 3. It is scheduled to declare its fourth-quarter 2024 results on Feb. 6.

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