Equifax (EFX) shares tumble on weak Q1 revenue, guidance miss

Shares of Equifax (NYSE: EFX) plummeted over 9% in premarket trading Thursday after the credit reporting agency’s FQ2 and full-year guidance fell short of analysts’ expectations.

For the fiscal Q1 2024, Equifax posted earnings per share (EPS) at $1.50, surpassing the consensus estimates of $1.44. Revenue for the quarter slightly missed expectations, totaling $1.39 billion compared to the consensus estimate of $1.4 billion.

For the fiscal Q2, the company forecasts its adjusted EPS for the second quarter to range between $1.65 and $1.75, falling below the analyst estimate of $1.86. Revenue is estimated to range between $1.41 billion and $1.43 billion, also below the anticipated $1.44 billion.

For the full fiscal 2024, Equifax said it expects an adjusted EPS between $7.20 and $7.50, compared to analysts' expectations of $7.64. The company also maintained its revenue forecast, predicting it will range from $5.67 billion to $5.77 billion, while analysts looked for $5.8 billion.

In their comments on the report, Stifel analysts said Equifax's quarterly results were "disappointing."

"While EPS were higher than expected, we (and consensus) had expected stronger revenue growth due to better mortgage market performance," they wrote.

"Additionally, 2Q24 EPS guidance is lower than expected, and the company reiterated the 2024 guidance – we believe the Street was expecting a guidance raise based on a better performing mortgage market," added Stifel analysts.

Similarly, Goldman Sachs analysts said they anticipate a mixed investor reaction to the release after below-consensus revenue and Q2 guidance.

By Vahid Karaahmetovic

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