Insights into Equifax's Upcoming Earnings

Equifax EFX will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Equifax to report an earnings per share (EPS) of $1.82.

Equifax bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

The company's EPS beat by $0.09 in the last quarter, leading to a 1.91% increase in the share price on the following day.

Here's a look at Equifax's past performance and the resulting price change:

Performance of Equifax Shares

Shares of Equifax were trading at $291.16 as of October 14. Over the last 52-week period, shares are up 66.88%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Equifax

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Equifax.

A total of 15 analyst ratings have been received for Equifax, with the consensus rating being Outperform. The average one-year price target stands at $315.33, suggesting a potential 8.3% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Verisk Analytics, Leidos Holdings and Booz Allen Hamilton, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Verisk Analytics, with an average 1-year price target of $281.5, indicating a potential 3.32% downside.
• Leidos Holdings received a Buy consensus from analysts, with an average 1-year price target of $172.18, implying a potential 40.86% downside.
• The consensus outlook from analysts is an Buy trajectory for Booz Allen Hamilton, with an average 1-year price target of $164.5, indicating a potential 43.5% downside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for Verisk Analytics, Leidos Holdings and Booz Allen Hamilton are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Equifax ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, Equifax is at the top for Return on Equity.

All You Need to Know About Equifax

Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax's credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders' credit decisions. In addition, over 40% of the firm's revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates just over 20% of its revenue from outside the United States.

Breaking Down Equifax's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, Equifax showcased positive performance, achieving a revenue growth rate of 8.57% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.46%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Equifax's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.54%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.34%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.17, Equifax faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Equifax visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.