Equifax Inc. EFX has reported mixed fourth-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

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EFX’s adjusted earnings were $2.12 per share, outpacing the Zacks Consensus Estimate by a slight margin and increasing 17.1% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by 1.5% but grew 6.8% on a year-over-year basis.

Equifax shares have gained 11.7% over the past year, outperforming the 8.9% increase of the industry while underperforming the 22.5% rise of the Zacks S&P 500 composite.

Equifax, Inc. Price, Consensus and EPS Surprise

Segmental Information for EFX

Revenues in the Workforce Solutions segment totaled $598.1 million, increasing 7% from the year-ago quarter and missing our estimate of $616.4 million. Within the segment, Verification Services’ revenues of $504.7 million rose 10% from the year-ago quarter. Employer Services’ revenues of $93.4 million moved down 9% on a year-over-year basis.

The USIS segment’s revenues were $472.5 million, which grew 10% from the year-ago quarter and beat our expectation of $470 million. Within the segment, Online Information Solutions’ revenues of $362.1 million rose 11% year over year. Mortgage Solutions’ revenues of $32.9 million increased 11% from the year-ago quarter. Financial Marketing Services’ revenues were $77.5 million, flat with the year-ago quarter.

Revenues in the International division amounted to $348.8 million, up 3% and 11% year over year on a reported and local-currency basis, respectively. The metric lagged our projection of $368.2 million.

Latin America’s revenues of $99.9 million increased 1% from the year-ago quarter on a reported basis and 29% on a local-currency basis. Revenues from Europe amounted to $99.8 million, up 7% year over year on a reported and 4% on a local-currency basis. Revenues from the Asia Pacific were $84 million, increasing 2% from the year-ago quarter on a reported and local-currency basis. Canada’s revenues of $65.1 million were flat with the year-ago quarter on a reported basis and 3% on a local-currency basis.

Equifax’s Operating Results

Adjusted EBITDA in the fourth quarter of 2024 amounted to $501.9 million, indicating a 12.5% increase on a year-over-year basis. The adjusted EBITDA margin was 35.4%, up 170 basis points from the year-ago quarter.

Workforce Solutions’ adjusted EBITDA margin was 51.9% compared with 51.2% in a year-ago quarter. The adjusted EBITDA margin for the USIS division was 38.3% compared with 35.1% in the fourth quarter of 2023. The adjusted EBITDA margin for the international segment was 32.5% in comparison with 31.2% in the year-ago quarter.

EFX’s Balance Sheet & Cash Flow

Equifax exited the fourth quarter with cash and cash equivalents of $169.9 million compared with $468.2 million at the end of the third quarter of 2024. The company has a long-term debt of $4.3 billion compared with $4.7 billion in the preceding quarter.

Cash generated from operating activities amounted to $324.8 million, whereas capital expenditure totaled $118.9 million. The company distributed $48.4 million as dividends in the quarter.

Equifax’s Q1 & 2025 Outlook

For the first quarter of 2025, the company expects revenues of $1.39-$1.42 billion. The company’s guided range is lower than the Zacks Consensus Estimate of $1.51 billion. EFX anticipates adjusted EPS of $1.33-$1.43. The guided range is lower than the Zacks Consensus Estimate for earnings of $1.83.

For 2025, Equifax has raised its revenue guidance to $5.89-$6.01 billion from the preceding quarter’s view of $5.70-$5.72 billion. The guided range is lower than the Zacks Consensus Estimate of $6.28 billion. The company has updated the adjusted EPS guidance to $7.25-$7.65 from the previous quarter’s view of $7.25-$7.35. The company’s guided range is lower than the Zacks Consensus Estimate for earnings of $8.74.

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 Snapshot

Automatic Data Processing, Inc. ADP reported impressive second-quarter fiscal 2025 results.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.6% and grew 8.1% on a year-over-year basis.

Accenture plc ACN posted better-than-expected first-quarter fiscal 2025 results.

ACN’s earnings (excluding 13 cents from non-recurring items) of $3.6 per share outpaced the Zacks Consensus Estimate by 6.2% and increased 28.7% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 3.1% and gained 9.1% on a year-over-year basis.

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