Here's What to Expect From Equifax's (EFX) Q3 Earnings
Equifax Inc. EFX is scheduled to release its third-quarter 2023 results on Oct 18, after the market close.
Equifax has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise is 3.7%.
Q3 Expectations
The consensus estimate for the top line is currently pegged at $1.33 billion, up 7.1% from the year-ago actual figure. The company is likely to experience continued strong customer demand across various lines of the business, including consumer, commercial, and government, which indicates a high probability of maintaining a strong and diversified customer base in the future.
The Zacks Consensus Estimate for earnings per share is pegged at $1.78, up 2.9% from the year-ago actual figure. The estimate has been revised slightly upward in the past 60 days. The company’s cost-reduction programs are expected to bode well, with the bottom line experiencing year-over-year growth.
Equifax, Inc. Price and EPS Surprise
Equifax, Inc. price-eps-surprise | Equifax, Inc. Quote
Segmental Information
Our estimate for third-quarter 2023 revenues from the U.S. Information Solutions (USIS) segment is currently pegged at $422.1 million, up 6.2% from the third-quarter 2022 reported figure. Total International revenues are expected to grow 4% from the year-ago figure. Our estimate for the same is currently pegged at $299.4 million. Revenues from Workforce Solutions are currently pegged at $602.2 million indicating 7.7% growth from the year-ago reported figure.
Adjusted EBITDA is currently pegged at $501.1 million, indicating a 23.8% year-over-year increase. USIS and International segments are likely to witness a gain of 34.3% and 4% to $182 million and $91.1 million, respectively. For Workforce Solutions, adjusted EBITDA is likely to reach $352.2 million, indicating a 27.4% increase from year-ago reported figures.
What Our Model Says
Our proven model predicts an earnings beat for EFX 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 before they’re reported with our Earnings ESP Filter.
Equifax has an Earnings ESP of +0.76% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Verisk Analytics VRSK: The company’s revenues are expected to decline 11.2% from the year-ago figure and the bottom line is expected to indicate slight growth from the year-ago figure. VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company currently holds a Zacks Rank of 2 and has an Earnings ESP of 10.52%.
S&P Global SPGI: The company’s revenues are expected to increase 5.7% from the year-ago figure and the bottom line is expected to indicate 4.1% growth from the year-ago figure. SPGI has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 3.9%. The company currently holds a Zacks Rank of 3 and has an Earnings ESP of 0.23%.
Republic Services RSG: The company’s revenues and bottom line are expected to indicate growth of 5.2% each from the year-ago figure. RSG has beaten the Zacks Consensus Estimate in all previous four quarters with an average surprise of 9.3%. The company currently holds a Zacks Rank of 3 and has an Earnings ESP of 1.13%.
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Equifax, Inc. (EFX) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
