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Equifax
🇺🇸 NYSE:EFX
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Sep 30, 2023

Equifax Q3 2023 Earnings Report

Equifax's Q3 2023 performance reflected strategic execution amidst a challenging mortgage market, with revenue up 6% and adjusted EPS up 2% despite headwinds from the U.S. mortgage market and foreign exchange.

Key Takeaways

Equifax reported Q3 2023 revenue of $1.319 billion, a 6% increase year-over-year, and adjusted EPS of $1.76, up 2% year-over-year. The company navigated a weaker than expected mortgage market and unfavorable foreign exchange rates, while achieving strong organic local currency non-mortgage revenue growth of 7%. Full year 2023 guidance was revised down to $5.256 billion in revenue and $6.67 adjusted EPS.

Third quarter revenue increased by 6% to $1.319 billion, or 6.5% in local currency.

Savings of $210 million was delivered from strong execution of the 2023 Cloud spending reduction plan, with 2024 run rate savings of $275 million.

Organic local currency non-mortgage revenue grew 7%, driven by new product innovation and a record New Product Vitality Index of 15%.

The acquisition of Boa Vista Serviços was closed, expanding Equifax's capabilities in the Brazilian market.

Total Revenue
$1.32B
Previous year: $1.24B
+6.0%
EPS
$1.76
Previous year: $1.73
+1.7%
USIS Operating Margin
21.1%
Workforce Solutions Oper. Margin
41.8%
Previous year: 41.3%
+1.2%
International Operating Margin
12.7%
Previous year: 14.8%
-14.2%
Gross Profit
$734M
Previous year: $702M
+4.6%
Cash and Equivalents
$413M
Previous year: $242M
+70.7%
Free Cash Flow
$247M
Total Assets
$12.3B
Previous year: $11.3B
+9.2%

Equifax

Equifax

Equifax Revenue by Segment

Equifax Revenue by Geographic Location

Forward Guidance

Equifax is reducing full year 2023 guidance at the midpoint to revenue of $5.256 billion and Adjusted EPS guidance of $6.67 per share. The reduction in both revenue and Adjusted EPS are principally due to the weaker US mortgage market and the impact of foreign exchange partially offset by the benefit from our Boa Vista acquisition. They expect the weaker U.S. mortgage market at current high interest rates to continue in the fourth quarter, and they now expect full year Equifax mortgage credit inquiries to decline about 34%.

Positive Outlook

  • Reported Revenue between $1.307 billion and $1.327 billion
  • Reported Revenue Growth between 9.1% and 10.8%
  • Local Currency Growth between 9.7% and 11.4%
  • Organic Local Currency Growth between 6.0% and 7.7%
  • Adjusted Earnings Per Share between $1.72 and $1.82

Challenges Ahead

  • Weaker U.S. mortgage market
  • Impact of foreign exchange
  • Expect the weaker U.S. mortgage market at current high interest rates to continue in the fourth quarter
  • Now expect full year Equifax mortgage credit inquiries to decline about 34%
  • Reducing full year 2023 guidance at the midpoint to revenue of $5.256 billion and Adjusted EPS guidance of $6.67 per share

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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