Equifax Inc (EFX) Q3 2023 Earnings: Strong Execution Amid Challenging Mortgage Market
Equifax Inc (NYSE:EFX) reports Q3 2023 revenue of $1.319 billion, up 6% year-over-year.
Strong execution of the 2023 Cloud spending reduction plan, delivering savings of $210 million.
Workforce Solutions non-mortgage revenue up 11% from strong Government growth.
International revenue grew 10% on a reported basis and 12% on a local currency basis.
Equifax Inc (NYSE:EFX) announced its financial results for the quarter ended September 30, 2023, on October 18, 2023. The company reported a 6% increase in revenue to $1.319 billion, despite a challenging mortgage market estimated to be down 29%. The company's strong execution of the 2023 Cloud spending reduction plan resulted in savings of $210 million.
Financial Performance
Equifax Inc (NYSE:EFX) reported a net income of $162.2 million, down 2% from $165.7 million in Q3 2022. Diluted EPS was $1.31 for Q3 2023, down 2% compared to $1.34 in Q3 2022. The company's Workforce Solutions segment reported total revenue of $577.2 million, up 3% compared to Q3 2022. The USIS segment reported total revenue of $426.0 million, up 7% compared to Q3 2022. International revenue was $315.9 million, up 10% on a reported basis and 12% on a local currency basis.
Key Financial Tables
Equifax Inc (NYSE:EFX) reported total operating expenses of $1,072.7 million, resulting in an operating income of $246.4 million. The company's net interest expense was $62.8 million, with other income reported at $7.1 million. The provision for income taxes was $26.4 million. The company's total current liabilities stood at $1,581.8 million, with long-term debt reported at $5,500.4 million.
Company's Outlook
Equifax Inc (NYSE:EFX) revised its guidance down to reflect the impact of a weaker than expected U.S. mortgage market and foreign exchange. The company reduced its full year 2023 guidance at the midpoint to revenue of $5.256 billion and Adjusted EPS of $6.67 per share. Despite the challenging mortgage market, the company expects strong 13% non-mortgage revenue growth in the fourth quarter, which represents over 85% of Equifax revenue.
Conclusion
Equifax Inc (NYSE:EFX) demonstrated strong execution in Q3 2023, delivering solid financial results despite a challenging mortgage market. The company's strategic initiatives, including the Cloud spending reduction plan, have resulted in significant savings and improved operational efficiency. Looking ahead, Equifax remains confident in its growth prospects, with a focus on new product roll-outs and expansion into new markets.
This article first appeared on GuruFocus.
