Equifax Reports Q3 Financial Results for 2024
Equifax Inc. (NYSE: EFX) reported its financial results for the third quarter ending September 30, 2024.
Financial Metrics Overview
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate | Comparison to Estimate |
|---|---|---|---|---|---|
| Revenue | $1.442 billion | $1.321 billion | +9% | $1.44 billion | In-line |
| Net Income | $141.3 million | $162.2 million | -13% | N/A | N/A |
| Diluted EPS | $1.13 | $1.31 | -14% | $1.83 | Below |
| Adjusted EPS | $1.85 | $1.76 | +5% | N/A | N/A |
Equifax’s third quarter performance showed a robust revenue growth of 9% year-over-year, reaching $1.442 billion. However, the company’s net income and diluted EPS saw declines of 13% and 14%, respectively, which did not meet the consensus estimate for EPS of $1.83. This shortfall was primarily due to higher operational costs and various adjustments specified in the earnings report.
Revenue Performance by Segment
| Segment | Revenue Q3 2024 | YoY Change |
|---|---|---|
| Workforce Solutions | $620.0 million | +7% |
| USIS | $476.9 million | +12% |
| International | $344.9 million | +9% |
Within its segments, Equifax saw notable performance in its USIS and International operations, recording 12% and 9% year-over-year revenue growth, respectively. The Workforce Solutions segment also contributed positively with a 7% increase.
Key Developments & Operational Highlights
- 13% boost in the company's New Product Vitality Index.
- 100% of new models and scores developed using AI and ML.
- Completion of USIS Consumer Credit and Telco and Utilities Exchanges migration to the cloud.
Executive Commentary
CEO Mark W. Begor emphasized confidence in Equifax’s strategy, highlighting the strength of their non-mortgage business and continued product innovation facilitated by their cloud capabilities. The company remains focused on delivering on strategic objectives and leveraging their AI-driven enhancements, setting the stage for sustained growth.
Forward Guidance
While specific forward guidance for adjusted financial metrics was not detailed, the release mentioned the company's confidence in achieving a long-term revenue growth framework of 8-12%.
Stock Price Movement
After the release, Equifax's stock experienced a slight decrease by 0.06%.
Equifax continues to position itself for future growth despite some challenges in the current financial quarter, guided by its technological innovations and strategic realignments.
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