Overview
- Equifax, which reported Tuesday, posted revenue of $1.65 billion up 14% with adjusted EPS of $1.86, topping Wall Street estimates.
- The beat stemmed from a burst of U.S. mortgage demand in January and February, when more home loans meant more credit checks that drive Equifax’s data and scoring fees.
- Management said mortgage activity slowed after rates climbed during the Iran conflict, which has weighed on the near-term pipeline.
- The company kept its full-year local-currency growth midpoint near 10% and inched up reported revenue by $25 million and adjusted EPS by $0.04 due to foreign exchange.
- Q2 guidance calls for reported revenue of $1.68 billion to $1.71 billion and adjusted EPS of $2.15 to $2.25, while a pricing dispute with FICO continues under regulatory scrutiny of credit-scoring costs.