Equifax to Report Q2 Earnings: What's in the Offing?

Equifax EFX is scheduled to report second-quarter 2024 results on Jul 17, after market close.

EFX has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missing in one, the average being 2.4%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is pegged at $1.4 billion, suggesting a 7.9% rise from the year-ago quarter's actual. Revenues are likely to have benefitted from an improved segmental performance.

The consensus estimate for earnings per share is pegged at $1.7, indicating a 1.1% increase on a year-over-year basis. A strong margin performance is expected to have driven the bottom line.

Segmental Information

Our estimate for second-quarter 2024 revenues from U.S. Information Solutions ("USIS") is pegged at $481.9 million, indicating 8.3% growth from the year-ago quarter's reported number. This is likely to have increased due to stronger-than-expected mortgage revenues.

Total International revenues are expected to grow 20% from the year-ago quarter's reported number to $347.7 million. Better-than-expected revenues in Europe and Latin America are expected to have driven this segment's revenues. Revenues from Workforce Solutions are anticipated to grow 3% year over year. Our estimate is pegged at $600.2 million.

Adjusted EBITDA for the USIS and International segments are estimated to witness year-over-year growth of 3.9% and 26.3% to $166.3 million and $88.7 million, respectively. The metric is anticipated to have been driven by growth in revenues and continued strong cost management. The adjusted EBITDA for Workplace Solutions is estimated to increase 2% to $306.1 million from the year-ago quarter's actual. This segment's adjusted EBITDA is expected to have been driven by growth in non-mortgage revenues due to cost execution.

What Our Model Says

Our proven model predicts an earnings beat for Equifax. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here.

EFX currently has an Earnings ESP of +0.66% and a Zacks Rank #3.

Other Stocks to Consider

Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.

Waste Connections WCN: The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $2.2 billion, indicating a 9.6% increase from the year-ago quarter's reported figure. For earnings, the consensus mark is pegged at $1.1 per share, suggesting a 16% rise from the year-ago quarter's actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 2.1%.

WCN has an Earnings ESP of +0.01% and currently flaunts a Zacks Rank of 1. The company is scheduled to declare its second-quarter results on Jul 24.

Republic Services RSG: The Zacks Consensus Estimate for the company's second-quarter 2024 revenues is pegged at $4 billion, implying a year-over-year 8.2% increase. For earnings, the consensus mark is pegged at $1.5 per share, suggesting a 7.8% rise from the year-ago quarter's reported figure. The company beat the consensus estimate in the past four quarters, with an average surprise of 7.8%.

RSG currently carries an Earnings ESP of +3.19% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter results on Jul 24.

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