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Is a Beat in the Cards for Equifax (EFX) in Q3 Earnings?

Zacks Equity Research

Equifax Inc. EFX is scheduled to report third-quarter 2019 results on Oct 23, after market close.

So far this year, shares of Equifax have gained 57.5% compared with 38.9% rise of the industry it belongs to and 18.1% increase of the Zacks S&P 500 composite.

 

 

Expectations in Detail

Strength across all the segments — USIS, International, Global Consumer Solutions and Workforce Solutions— is likely to have benefited Equifax’s third-quarter 2019 revenues, the Zacks Consensus Estimate for which stands at $873.17 million, indicating a growth of 4.7% from the year-ago period reported figure. The consensus estimate lies within the company’s guided range of $865-$880 million. In second-quarter 2019, total revenues of $880 million grew 0.4% year over year.

Segment-wise, the consensus mark for U.S. Information Solutions (USIS) segment revenues is pegged at $324 million, indicating growth of 5.2% from the year-ago reported figure. Solid organic revenue growth coupled with strength across the company’s government and insurance verticals and identity and fraud solutions (aided by new product sales) might have benefitted the segment.

The consensus estimate for International segment revenues is pegged at $236 million, suggesting a growth of 0.4% from the year-ago reported figure. The segment is likely to have performed well on the back of revenue growth in Canada and Latin America and improvement in the UK and Australia.

The consensus mark for Global Consumer Solutions segment revenues is pegged at $90 million, indicating a growth of 1.1% from the year-ago reported figure. Strength across Canadian and UK direct businesses and improvement in US consumer direct revenues, US subscriber count and partner revenues are likely to have boosted segment revenues.

The consensus estimate for Workforce Solutions segment revenues is pegged at $225 million, indicating growth of 11.4% from the year-ago reported figure. Strength across verification services might have improved the segment revenues.

The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $1.44, indicating a growth of 2.1% from the year-ago reported figure. Notably, the consensus estimate lies within the guided adjusted EPS range of $1.41-$1.46.In second-quarter 2019, adjusted earnings of $1.40 per share decreased 10.3% year over year.

What Our Model Says

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Equifax has an Earnings ESP of +1.08% and a Zacks Rank #3.

Equifax, Inc. Price and EPS Surprise

 

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. price-eps-surprise | Equifax, Inc. Quote

Other Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these too have the right combination of elements to beat on third-quarter 2019 earnings:

S&P Global SPGI has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransUnion TRU has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is slated to release results on Oct 22.

Verisk VRSK has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29.

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Equifax, Inc. (EFX) : Free Stock Analysis Report
 
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