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Sep 30, 2022
Equifax Q3 2022 Earnings Report
Equifax reported strong third quarter revenue, driven by non-mortgage growth and international performance.
Key Takeaways
Equifax announced financial results for Q3 2022, with revenue up 2% to $1.244 billion. The company's non-mortgage business showed strong constant dollar revenue growth of 20%, offsetting a decline in the mortgage market. Workforce Solutions and International segments performed well, while USIS revenue declined due to the mortgage market downturn. Full year revenue guidance was maintained at $5.1 billion, but Adjusted EPS guidance was revised downward to $7.54 per share.
Third quarter revenue reached $1.244 billion, a 2% increase despite mortgage market challenges and foreign exchange impacts.
Non-mortgage constant dollar revenue grew by 20%, compensating for the mortgage market decline.
Workforce Solutions revenue increased by 9%, with non-mortgage revenue growth of 40%.
International revenue achieved record levels, with a 17% increase in local currency revenue.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is revising its fourth quarter guidance to reflect the expected impact of a further decline in U.S. mortgage originations and the negative impact of foreign exchange. Full year guidance for revenue is unchanged at $5.1 billion at the midpoint, while Adjusted EPS guidance is revised downward to $7.54 per share at the midpoint.
Positive Outlook
- Strong double-digit non-mortgage revenue growth.
- Progress on EFX Cloud transformation.
- Leveraging new Cloud capabilities to accelerate new product roll-outs.
- Investing in new product and data and analytics capabilities to drive future growth.
- Addition of recent LawLogix and Midigator acquisitions.
Challenges Ahead
- Further weakening in the U.S. mortgage market.
- Expected decline in fourth quarter mortgage originations of over 60%.
- Expected decline in fourth quarter mortgage credit inquiries of over 50%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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