Jun 30, 2021

Equifax Q2 2021 Earnings Report

Equifax's financial performance for Q2 2021 demonstrated strong growth, marked by record revenue and significant increases in net income and EPS.

Key Takeaways

Equifax reported record revenue of $1.235 billion, a 26% increase year-over-year, driven by broad-based growth across Workforce Solutions, USIS, and International segments. Net income increased by 115% to $215.1 million, and diluted EPS rose by 113% to $1.74. The company is raising its full-year financial guidance, reflecting confidence in its outlook.

Equifax achieved its highest ever quarterly revenue of $1.2 billion, representing a 26% increase.

The company saw broad-based revenue growth across its segments, with Workforce Solutions up 40%, USIS up 11%, and International up 39% in reported currency.

Equifax continued to make progress on its EFX Cloud data and technology transformation.

The company is increasing its full-year revenue and EPS guidance.

Total Revenue
$1.23B
Previous year: $983M
+25.6%
EPS
$1.98
Previous year: $1.6
+23.7%
Adjusted EBITDA Margin
34.9%
Previous year: 35.9%
-2.8%
USIS Operating Margin
31.1%
Workforce Solutions Oper. Margin
53.5%
Gross Profit
$752M
Previous year: $574M
+31.1%
Cash and Equivalents
$458M
Previous year: $1.35B
-66.0%
Total Assets
$9.34B
Previous year: $8.83B
+5.7%

Equifax

Equifax

Equifax Revenue by Segment

Equifax Revenue by Geographic Location

Forward Guidance

Equifax is raising its full-year 2021 revenue guidance to a range of $4.76 billion to $4.80 billion and adjusted EPS guidance to a range of $7.25 to $7.45.

Positive Outlook

  • Full-year revenue guidance increased to $4.76B - $4.80B.
  • Full-year adjusted EPS guidance increased to $7.25 - $7.45.
  • Q3 2021 revenue is expected to be $1.16B - $1.18B.
  • Q3 2021 adjusted EPS is expected to be $1.62 - $1.72 per share.
  • Share repurchases of more than $100 million are planned.

Challenges Ahead

  • Assumes a decline of approximately 23% in total U.S. mortgage credit inquiries for Q3 2021.
  • Assumes a decline of approximately 8% for the full year 2021 in total U.S. mortgage credit inquiries.
  • U.S. Mortgage Market transaction volume is expected to decrease.
  • COVID-19 and changes in U.S. and worldwide economic conditions could impact consumer spending.
  • Potential adverse developments in new and pending legal proceedings or government investigations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income