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Equifax (EFX) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

Equifax Inc. EFX is scheduled to report fourth-quarter 2019 results on Feb 12, after the bell.

Shares of the company have gained 46% over the past year compared with 42.3% growth of the industry it belongs to.

Q4 Expectations

The Zacks Consensus Estimate for revenues stands at $897.2 million, indicating growth of 7.4% from the year-ago period reported figure. The top line is expected to have benefited from strong performance across the company’s USIS, Global Consumer Solutions and Workforce Solutions segments.

The consensus mark for U.S. Information Solutions (USIS) segment revenues is pegged at $334 million, indicating growth of 8.8% from the year-ago quarter’s reported figure. The consensus mark for Global Consumer Solutions segment revenues stands at $88 million, suggesting an increase of 2.3% from the year-ago quarter’s reported figure. The consensus estimate for Workforce Solutions segment revenues is pegged at $225 million, indicating growth of 15.5% from the year-ago quarter’s reported figure.

In third-quarter 2019, total revenues of $875.7 million grew 5% year over year.

Equifax, Inc. Revenue (TTM)

Equifax, Inc. Revenue (TTM)

Equifax, Inc. revenue-ttm | Equifax, Inc. Quote

The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $1.49, indicating growth of 8% from the year-ago quarter’s reported figure. In third-quarter 2019, adjusted earnings of $1.48 per share decreased 4.9% year over year.

What Our Model Says

Our proven Zacks model does not predict an earnings beat for Equifax this season. 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’s not the case here. 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 0.00% and a Zacks Rank #4 (Sell).

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 have the right combination of elements to beat on fourth-quarter 2019 earnings:

SailPoint Technologies SAILhas an Earnings ESP of +4.92% and a Zacks Rank #2. The company is slated to report results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Republic Services RSG has an Earnings ESP of +2.67% and a Zacks Rank #2. The company is slated to release results on Feb 13.

Fidelity National Information Services FIS has an Earnings ESP of +0.30% and a Zacks Rank #3. The company is slated to release results on Feb 13.

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