Equifax Gears Up to Report Q1 Earnings: What's in the Offing?

Equifax EFX is scheduled to report first-quarter 2025 results on April 22, before market open.

EFX has a decent earnings surprise history. It has outperformed the Zacks Consensus Estimate in four preceding quarters, with an average of 2.9%.

Equifax, Inc. Price, Consensus and EPS Surprise

EFX’s Q1 Expectations

The Zacks Consensus Estimate for Equifax’s top line is pegged at $1.4 billion, suggesting a 1.9% rise from the year-ago quarter’s actual. The consensus estimate for earnings per share is pegged at $1.41, hinting at a 6% year-over-year slip. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The top line is expected to have been fueled by improved segmental performances. We anticipate revenue growth and strong margin expansion to have benefited the bottom line.

Estimates for EFX’s Segments

Revenues from Workforce Solutions are likely to grow marginally year over year. Our estimate is pegged at $605.1 million. Our expectation for first-quarter 2025 revenues from U.S. Information Solutions (“USIS”) is pegged at $476.4 million, implying a 2.4% rise from the year-ago quarter’s reported number. Strong mortgage performance is expected to have driven this segment’s revenues.

We anticipate total international revenues to increase 5.1% from the year-ago quarter to $338.8 million. This segment’s revenues are likely to have benefited from robust growth across Latin America, Canada, Australia and Europe.

Adjusted EBITDA for the USIS and International segments are likely to witness year-over-year growth of 2.4% and 5.1% to $162.1 million and $82.2 million, respectively. We expect cloud cost reduction due to decommissioned legacy consumer, telco and utility technology platforms to have aided the USIS segment’s adjusted EBITDA. Strong revenue growth and disciplined cost execution are believed to have boosted the adjusted EBITDA of the international segment.

The adjusted EBITDA for Workplace Solutions is likely to be $296.8 million, down 3.6% from the year-ago quarter’s actual.

What Our Model Says About EFX

Our proven model does not predict an earnings beat for Equifax this time around. 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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

EFX has an Earnings ESP of -0.85% and a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

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

Booz Allen Hamilton BAH: The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2025 revenues is pegged at $3 billion, indicating year-over-year growth of 8.9%. For earnings, the consensus mark is pegged at $1.59, suggesting 19.6% growth from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past three quarters and missed once, with an average surprise of 6.7%.

BAH carries an Earnings ESP of +5.74% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its fourth-quarter fiscal 2025 results on May 23.

Corpay, Inc. CPAY: The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $1 billion, indicating an 8.5% increase from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $4.51 per share, suggesting 10% growth from the year-ago quarter’s reported number. CPAY surpassed the consensus estimate in the past four quarters, with an average beat of 0.6%.

Corpay has an Earnings ESP of +2.16% and a Zacks Rank of 3. It is scheduled to declare its first-quarter 2025 results on May 6.

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This article originally published on Zacks Investment Research (zacks.com).

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