Equifax (NYSE: EFX) reported Q4 EPS of $2.00, $0.17 better than the analyst estimate of $1.83. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.08 billion.

Financial Results Summary

• The Company reported revenue of $1,118.5 million in the fourth quarter of 2020, a 23 percent increase from the fourth quarter of 2019 on both a reported and local currency basis.
• Fourth quarter 2020 diluted EPS attributable to Equifax was $0.61 per share, up from $0.13 per share in the fourth quarter of 2019.
• Net income attributable to Equifax of $74.5 million was up from $15.8 million in the fourth quarter of 2019.
• In the fourth quarter, Equifax incurred a $31.9 million charge related to right sizing the organization as investments in technology transformation are reduced in 2021 relative to 2020.

"Equifax delivered its fourth consecutive quarter of strong double-digit growth and margin expansion, concluding a record year in which we delivered over $4 billion in revenue for the first time. Workforce Solutions and U.S. Information Services outperformance fueled our 23% revenue growth in the fourth quarter by leveraging our new Equifax Cloud capabilities, new product roll-outs, new data assets, and customer growth," said Mark W. Begor, Equifax Chief Executive Officer. "We are entering a new chapter at Equifax as we leverage our expanding cloud native data, analytics and technology infrastructure to accelerate innovation, new products and growth. Our strong performance in these challenging times reflects the strength and resiliency of our business model as we look to build upon our momentum and focus on growth in 2021 and beyond. We are increasing our focus on acquisitions that will accelerate our growth including our acquisition of Kount in Identity and Fraud. Based on our confidence in the future we plan to restart our share repurchase program at an expected level over $100 million in 2021, to offset dilution from employee benefit plans."

GUIDANCE:

Equifax sees Q1 2021 EPS of $1.45-$1.55, versus the consensus of $1.46. Equifax sees Q1 2021 revenue of $1.105-1.125 billion, versus the consensus of $1.07 billion.

Equifax sees FY2021 EPS of $6.20-$6.50, versus the consensus of $6.45. Equifax sees FY2021 revenue of $4.35-4.45 billion, versus the consensus of $4.35 billion.

2021 First Quarter and Full Year Guidance

• For the first quarter of 2021, we expect reported revenue to be between $1,105 and $1,125 million, reflecting growth as compared to the first quarter of 2020 of 15.3% to 17.4%, with an expected 1.9% positive impact of foreign exchange. Adjusted EPS is expected to be between $1.45 and $1.55 per share. Impacting first quarter 2021 revenue and adjusted EPS is an expectation of a 24% increase in U.S. mortgage market inquiries impacting our USIS and EWS units.
• We expect full year 2021 reported revenue to be between $4.350 and $4.450 billion, reflecting local currency growth compared to 2020 of 5.4% to 7.8%, with an expected 1.5% positive impact of foreign exchange. Adjusted EPS is expected to be between $6.20 and $6.50 per share. We expect to engage in share repurchases for a total amount to exceed $100 million. U.S. mortgage market inquiries are expected to decline by 5% in 2021 versus 2020, with growth in inquiries in the first half of 2021, offset by a decline in inquiries in the second half of 2021.

For earnings history and earnings-related data on Equifax (EFX) click here.