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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.
Equifax
Equifax
Equifax Revenue by Segment
Equifax Revenue by Geographic Location
Revenue by Segment
Workforce Solutions Revenue
CapyFin.comU.S. Information Solutions Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
Latin America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comCanada Revenue
CapyFin.com 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