Equifax Set for Earnings Announcement: Q3 2024 Preview

Equifax EFX will reveal its third-quarter 2024 results on October 16, after the market closes.

Historically, EFX has excelled in meeting or exceeding earnings expectations, having surpassed the Zacks Consensus Estimate in three out of the last four quarters, with an average beat of 3.2%.

Expectations for EFX in Q3

The Zacks Consensus Estimate forecasts Equifax’s revenue to be $1.4 billion. This reflects a 9.5% increase compared to the same quarter last year, largely due to stronger performance across its segments.

Earnings per share are expected to rise to $1.8, indicating a 4.6% increase year-over-year, driven by solid margin performance.

Segment Breakdown for EFX

International revenues are projected to jump 25.4% from last year’s figure, reaching $366.4 million. Growth in Europe and Latin America is anticipated to contribute significantly to this increase.

For U.S. Information Solutions (USIS), revenues are estimated at $459.4 million, which represents a 7.8% year-over-year rise. A favorable pricing environment and the effectiveness of EFX’s pre-qual products are expected to enhance this segment’s revenues.

Workforce Solutions is also anticipated to perform well, with a projected revenue growth of 7.1% from last year, amounting to $618.1 million.

Adjusted EBITDA for the USIS and International segments are expected to grow by 7.2% and 24.2%, respectively, reaching $156.3 million and $102.9 million. This growth is expected to stem from robust revenue increases. Workforce Solutions’ adjusted EBITDA is likely to be $318.3 million, which is an 8.4% improvement year-over-year, driven by strong revenue growth in non-mortgage verifier services and effective cost management.

Predictions from Our Model

Our model suggests that Equifax is likely to deliver an earnings beat. The combination of a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) creates a strong likelihood of exceeding earnings expectations. Currently, EFX holds an Earnings ESP of +1.56% and a Zacks Rank of 2.

Other Stocks Worth Watching

Here are a few additional stocks within the broader Business Services sector that may also exceed earnings expectations this season, according to our model.

Booz Allen Hamilton BAH: The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is $3 billion, which reflects a 10.9% increase from the prior year. Earnings are estimated at $1.5 per share, indicating a 14.7% rise. BAH has met or exceeded consensus estimates in half of its past four quarters, showing an average surprise of 5.8%. The company has an Earnings ESP of +0.17% and a Zacks Rank of 2, with results scheduled for October 25.

Fiserv FI: The Zacks Consensus Estimate for Fiserv’s third-quarter 2024 revenues is $4.9 billion, up 6.3% year-over-year. Earnings per share are projected at $2.3, suggesting a 14.8% increase. Fiserv has consistently exceeded estimates over the past four quarters, with an average surprise of 2.8%. It also holds an Earnings ESP of +0.12% and a Zacks Rank of 2, with results expected on October 22.

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