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Is a Beat in the Cards for Equifax (EFX) in Q4 Earnings?

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Zacks Equity Research
·3 min read
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Equifax Inc. EFX is scheduled to report fourth-quarter 2020 results on Feb 10, after market close.

Let’s check out the expectations in detail.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter revenues is at $1.09 billion, which indicates growth of 19.9% from the year-ago quarter’s reported figure. The upbeat is likely to have been driven by strength in U.S. Information Solutions and Workforce Solutions segments.

The consensus estimate for U.S. Information Solutions segment’s revenues is pegged at $388 million, suggesting increase of 17.2% from the year-ago quarter’s reported figure. The consensus mark for Workforce Solutions segment’s revenues is pegged at $388 million, indicating year-over-year growth of 54.6%. The Zacks Consensus Estimate for International segment revenues is pegged at $236 million, flat with the year-ago quarter figure. The consensus mark for Global Consumer Solutions segment’s revenues is at $76 million, suggesting a decline of 14.6% from the year-ago quarter’s reported figure.

In third-quarter 2020, Equifax’s revenues of $1.07 billion rose 22% on a year-over-year basis.

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. Price and EPS Surprise
Equifax, Inc. Price and EPS Surprise

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

Improvement in operational efficiency is likely to have contributed to the bottom line. The Zacks Consensus Estimate for earnings is pegged at $1.83, which indicates growth of 19.6% from the year-ago quarter’s reported figure.

In third-quarter 2020, Equifax’s earnings of $1.87 per share increased 26.4% on a year-over-year basis.

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 1.44% and a Zacks Rank #3.

Other Stocks to Consider

Here are a few other 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 fourth-quarter 2020 earnings.

TransUnion TRU has an Earnings ESP of +2.30% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Omnicom Group OMC has an Earnings ESP of +1.23% and a Zacks Rank #3.

S&P Global SPGI has an Earnings ESP of +3.28% and a Zacks Rank #3.

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

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