/Equifax%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
Equifax Inc. (EFX), headquartered in Atlanta, Georgia, is a leading global data, analytics, and technology company. Valued at $30.3 billion by market cap, the company brings buyers and sellers together through its information management, transaction processing, direct marketing, and customer relationship management businesses. The credit bureau giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 5.
Ahead of the event, analysts expect EFX to report a profit of $2.11 per share on a diluted basis, up 16.6% from $1.81 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect EFX to report EPS of $7.28, up 8.5% from $6.71 in fiscal 2023. Its EPS is expected to rise 25% year over year to $9.10 in fiscal 2025.
EFX stock has underperformed the S&P 500’s ($SPX) 22% gains over the past 52 weeks, with shares up 1.6% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI)18.5% gains over the same time frame.
EFX's underperformance can be attributed to the impact of high interest rates suppressing mortgage demand, while stagnant mortgage markets and reliance on non-mortgage growth weigh on investor sentiment. Additionally, increased delinquency rates among newcomers and individuals new to credit in Canada, despite some relief from recent interest rate cuts amid rising unemployment rates, and high inflation in recent years have strained its financial performance. Moreover, rising Canadian consumer debt, driven by auto loans and unpaid credit card balances, raises concerns about financial management practices.
On Oct. 16, EFX reported its Q3 results and its shares closed down more than 3% in the following trading session. Its revenue of $1.4 billion, met Wall Street forecasts. The company’s adjusted EPS was $1.85, surpassing analyst estimates of $1.84. EFX expects full-year adjusted EPS to be between $7.25 and $7.35, and it expects full-year revenue to be between $5.7 billion and $5.72 billion.
Analysts’ consensus opinion on EFX stock is bullish, with a “Strong Buy” rating overall. Out of 20 analysts covering the stock, 14 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and four give a “Hold.” EFX’s average analyst price target is $310.67, indicating a potential upside of 25.5% from the current levels.
