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With a market cap of $29.7 billion, Equifax Inc. (EFX) operates as a global leader in data, analytics, and technology, providing critical information solutions across various industries and regions worldwide. The Atlanta, Georgia-based company is expected to announce its fiscal Q2 earnings results on Wednesday, July 17.
Ahead of this event, analysts expect the credit ratings firm to report a profit of $1.72 per share, up marginally from $1.71 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Stronger-than-expected job growth and steady wage increase helped the company surpass the consensus EPS estimate by 4.2% in the most recent quarter.
For fiscal 2024, analysts expect EFX to report EPS of $7.37, up 9.8% from $6.71 in fiscal 2023.
Shares of Equifax have surged 4.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 24.3% gains and the S&P 500 Industrial Sector SPDR's (XLI) 13.3% return over the same time frame.
Equifax's price action is driven by challenges in the U.S. mortgage market, resulting in lower-than-expected 2024 revenue forecasts. Despite this, the stock surged 4.2% on Feb. 8 after the company exceeded Q4 revenue and adjusted profit estimates, signaling strong operational performance and optimism for a potential recovery in the latter half of the year.
However, despite beating Q1 bottom-line estimates, the stock fell 8.5% on Apr. 18 as the company forecasts Q2 revenue below estimates. The ongoing impact of high interest rates on mortgage demand and credit inquiries compounded this disappointment.
Analysts' consensus rating on Equifax stock is bullish, with a "Strong Buy" rating overall. Out of 18 analysts covering the stock, 13 recommend a "Strong Buy," one gives a "Moderate Buy," and four advise a "Hold" rating. The average analyst price target for EFX is $270.94, suggesting a potential upside of nearly 12.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
