Equifax posted its second quarter earnings that surpassed analysts' forecasts, while its revenue was in line with estimates.
The company’s earnings came in at $2.09 per share, compared to $2 expected by analysts polled by Investing.com.
Revenues climbed +7% to $1.32 billion, similar to analysts’ forecasts.
Core revenue growth in the quarter was +19%, and core organic revenue growth came in at +16% in the quarter.
Workforce Solutions core revenue climbed +41%. USIS B2B non-mortgage growth of 6% was up from first quarter, but lower than the Equifax expected. B2B non-mortgage online growth was 9%. However, our B2B offline business was much weaker than the company expected, decreasing -5% in the quarter.
Equifax is expecting 2022 core revenue growth of 17%, and for constant currency non-mortgage revenue growth is 19% -- both unchanged from the April guidance.
The company updated its outlook on mortgage, as it anticipates credit inquiries decline by over -46% in the second half, which is about 600 basis points lower from April framework with mortgage originations down 200 to 300 basis points beyond these levels.
The 10-day moving average for EFX crossed bearishly below the 50-day moving average on April 10, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on EFX as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
EFX moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EFX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for EFX entered a downward trend on April 05, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator entered the oversold zone -- be on the watch for EFX's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EFX advanced for three days, in of 371 cases, the price rose further within the following month. The odds of a continued upward trend are .
EFX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EFX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.143) is normal, around the industry mean (75.626). P/E Ratio (59.257) is within average values for comparable stocks, (82.684). Projected Growth (PEG Ratio) (0.958) is also within normal values, averaging (1.727). Dividend Yield (0.006) settles around the average of (0.055) among similar stocks. P/S Ratio (6.135) is also within normal values, averaging (33.582).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of information solutions and human resources business process outsourcing services
Industry MiscellaneousCommercialServices