- Equifax Inc (NYSE:EFX) reported first quarter 2023 revenues of $1.30 billion, down 4% Y/Y, beating the consensus of $1.28 billion.
- Workforce Solutions revenues declined 8% Y/Y to $596.3 million due to a decrease of 11% Y/Y in Verification Services revenue.
- Workforce Solutions non-mortgage revenue grew 11% Y/Y on solid growth in Government and Talent Solutions business.
- US Information Solution revenues fell 3% Y/Y to $421.7 million on lower revenues from Online Information Solutions business.
- US Information Solution B2B non-mortgage revenue rose 8% Y/Y, with strong online non-mortgage revenues.
- International revenues rose 1% Y/Y to $284.0 million on increased revenues from all geographies except Europe.
- The company witnessed strong new product performance, with Vitality Index of 13%.
- In Q1, EFX inked a deal to acquire Boa Vista Serviços.
- Adjusted EBITDA margin contracted to 29.2% from 35.5% year ago.
- Adjusted EPS declined 36% Y/Y to $1.43, above the consensus of $1.37.
- Outlook: EFX expects Q2 revenue of $1.31 billion-$1.33 billion (consensus $1.34 billion) and adjusted EPS within $1.60-$1.70 (estimate $1.81).
- For 2023, it continues to see revenues of $5.275 billion – $5.375 billion (consensus $5.32 billion) and adjusted EPS of $7.05-$7.35 (consensus $7.16).
- “We are energized about the New Equifax and remain confident in our long-term 8-12% growth framework that will deliver higher margins and free cash flow,” said Mark W. Begor, CEO.
- The company said it is on track to deliver planned $200 million in spending reductions in 2023, including $120 million in expense and $80 million in capital spending reductions.
- Price Action: EFX shares closed higher by 0.06% at $194.91 on Wednesday.
Investor Optimism Improves Further As Investors Assess Economic Reports
The CNN Money Fear and Greed index showed further improvement in overall sentiment in U.S. investors on Wednesday.
U.S. stocks closed higher on Wednesday, with the S&P 500 recording gains for the fourth straight session.
