Equifax (EFX, $207.10) beats Q2 earnings expectations
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.
EFX in upward trend: 10-day moving average crossed above 50-day moving average on May 01, 2023
The 10-day moving average for EFX crossed bullishly above the 50-day moving average on May 01, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 15, 2023. You may want to consider a long position or call options on EFX as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EFX just turned positive on May 10, 2023. Looking at past instances where EFX's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
EFX moved above its 50-day moving average on May 10, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EFX advanced for three days, in of 362 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 315 cases where EFX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EFX moved out of overbought territory on May 23, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 66 cases where EFX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
EFX broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly 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 slightly overvalued 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 (6.357) is normal, around the industry mean (68.081). P/E Ratio (44.248) is within average values for comparable stocks, (122.178). Projected Growth (PEG Ratio) (2.186) is also within normal values, averaging (1.769). Dividend Yield (0.007) settles around the average of (0.038) among similar stocks. P/S Ratio (5.131) is also within normal values, averaging (76.101).
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