Equifax (EFX) Reports Earnings Tomorrow: What To Expect

Credit reporting giant Equifax (NYSE:EFX) will be reporting results this Tuesday before market open. Here’s what to expect.

Equifax beat analysts’ revenue expectations last quarter, reporting revenues of $1.55 billion, up 9.2% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ EPS guidance for next quarter estimates.

Is Equifax a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Equifax’s revenue to grow 12.1% year on year, improving from the 3.8% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Equifax has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Equifax’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 2.9%, and ManpowerGroup reported revenues up 10.3%, topping estimates by 2.1%. Marsh’s stock price was unchanged after the resultswhile ManpowerGroup was up 1.3%.

Read our full analysis of Marsh’s results here and ManpowerGroup’s results here.

There has been positive sentiment among investors in the professional services segment, with share prices up 9.5% on average over the last month. Equifax is up 9% during the same time and is heading into earnings with an average analyst price target of $232.57 (compared to the current share price of $195.34).

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