Preview: Equifax's Earnings
On Wednesday, February 10, Equifax (NYSE:EFX) will release its latest earnings report. Here is Benzinga's outlook for the company.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts expect Equifax earnings of $1.83 per share. Revenue will likely be around $1.08 billion, according to the consensus estimate. Equifax earnings in the same period a year ago was $1.53 per share. Quarterly sales came in at $905.80 million.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 19.61%. Revenue would be up 19.23% on a year-over-year basis. Here is how the Equifax's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 1.60 | 1.27 | 1.29 | 1.49 |
EPS Actual | 1.87 | 1.60 | 1.40 | 1.53 |
Revenue Estimate | 1.00 B | 913.00 M | 911.81 M | 896.00 M |
Revenue Actual | 1.07 B | 982.80 M | 957.90 M | 905.80 M |
Stock Performance
Shares of Equifax were trading at $179.43 as of February 08. Over the last 52-week period, shares are up 16.72%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Equifax is scheduled to hold the call at 08:30:00 ET and can be accessed here.
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