Equifax (EFX, Financial) reported first-quarter revenue of $1.44 billion, exceeding analysts' expectations of $1.42 billion. This marks a 4% increase on a reported basis and a 5% rise when measured in local currency. The revenue surpassed the company's February guidance midpoint by $37 million, driven by a 7% growth in U.S. Mortgage revenue and continuous innovation, reflected in a Vitality Index of 11%.
The company's Workforce Solutions division saw a revenue increase of 3%, with Verification Services experiencing a 5% growth. This was primarily fueled by a 6% rise in Non-Mortgage revenue, underpinned by strong performance in Talent Solutions and Consumer Lending, alongside better-than-expected growth in Government sectors. Despite ongoing challenges in the Mortgage market, Equifax's Mortgage revenue grew by 3%.
In the United States Information Solutions (USIS) segment, Equifax achieved robust revenue growth of over 7%, aligning with their long-term financial framework of 6 to 8%. This growth was bolstered by an impressive 11% increase in Mortgage revenue and a 6% rise in Non-Mortgage revenue, notably in Card and Auto sectors.
Internationally, Equifax experienced a 7% revenue growth in local currency terms, with strong contributions from Latin America. The company's performance reflects resilience amid a challenging market environment, showcasing its ability to innovate and capture growth opportunities across various sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Equifax Inc (EFX, Financial) is $276.29 with a high estimate of $310.00 and a low estimate of $230.00. The average target implies an upside of 28.33% from the current price of $215.29. More detailed estimate data can be found on the Equifax Inc (EFX) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Equifax Inc's (EFX, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equifax Inc (EFX, Financial) in one year is $264.69, suggesting a upside of 22.95% from the current price of $215.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equifax Inc (EFX) Summary page.
