NYSE$EFX

Equifax Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Equifax's Q4 2022 performance was marked by a revenue decrease due to mortgage market decline, offset by non-mortgage growth and strategic investments.

Equifax reported a 4% decrease in Q4 2022 revenue to $1.198 billion, primarily due to a 41% decline in mortgage revenue. However, non-mortgage revenue grew by 12% in constant currency. The company is implementing cost reduction measures and investing in strategic acquisitions.

  • Q4 2022 revenue decreased by 4% to $1.198 billion due to a 41% decline in mortgage revenue.
  • Non-mortgage revenue grew by 12% in constant currency, driven by Workforce Solutions and USIS.
  • The company is accelerating Cloud cost savings and executing broader restructuring to deliver $200 million of spending reduction in 2023.
  • Equifax is expanding capabilities in the Brazilian market through the acquisition of Boa Vista Serviços.

Headline financials

Total Revenue

$1.2B

Previous: $1.25B-4.4%
EPS (adj)

$1.52

Previous: $1.84-17.4%
Workforce Solutions Operating Margin

36.5%

Previous: 40.5%-9.9%
Workforce Solutions Adj. EBITDA Margin

46.8%

Previous: 48.4%-3.3%
International Operating Margin

12.4%

Previous: 16.1%-23.0%
International Adj. EBITDA Margin

25.8%

Previous: 29.9%-13.7%
Adjusted EBITDA Margin

31.0%

Previous: 32.2%-3.7%
Net Income

$108M

Previous: $122M-11.4%
Operating Income

$176M

Previous: $252M-30.2%
Gross Profit

$659M

Previous: $728M-9.5%
Cash & Equivalents

$285M

Previous: $225M+26.9%
Total Assets

$11.5B

Previous: $11B+4.6%
Stock-Based Comp

$12.2M

Previous: $10.1M+20.8%

Revenue & EPS history

Equifax · Revenue · Quarterly

$1.2B

Q4 2022-4.4%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Equifax · $2.18B total across 7 segments · Q4 2021

  • Workforce Solutions
    $532M+30.8%
  • U.S. Information Solutions
    $434M+12.0%
  • Verification Services
    $427M
  • Online Information Solutions
    $314M
  • International
    $288M+16.2%
  • Employer Services
    $105M
  • Financial Marketing Services
    $79.4M

Forward guidance

Equifax projects full-year 2023 revenue to be $5.325 billion, with approximately 8% non-mortgage growth and adjusted EPS of $7.20, while anticipating a 30% decline in the U.S. mortgage market.

Tailwinds

  • Full-year 2023 revenue guidance midpoint expectation of $5.325 billion.
  • Strong Non-Mortgage growth of approximately 8% expected.
  • Adjusted EPS guidance of $7.20.
  • Continuing to reinvest outperformance in strategic bolt-on acquisitions.
  • Confident in the future of the New Equifax as we deliver strong, double-digit non-mortgage growth.

Headwinds

  • Expectation of a continued 30% decline in the U.S. mortgage market.
  • Uncertain 2023 economic environment.
  • Executing broader proactive cost actions to deliver $200 million of spending reduction in 2023.
  • Q1 2023 Reported Revenue Growth (6.8)% to (5.4)%.
  • Q1 2023 Adjusted Earnings Per Share $1.30 to $1.40.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.6%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.4%

Avg return

30 days after

43%

30 / 70 earnings

Positive

+15.2%

Q1 2021

Best reaction

-17.4%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.2%-13.1%-19.4%
Q4 2025-3.8%+14.0%+18.7%
Q3 2025-0.6%+1.2%-10.6%
Q2 2025-2.1%-1.3%+1.2%
Q1 2025+13.8%+19.1%+22.4%
Q4 2024-8.4%-6.4%-5.8%
Q3 2024-3.4%-4.9%-14.4%
Q2 2024-0.2%+1.9%+10.5%
Q1 2024-8.8%-8.2%+4.3%
Q4 2023+3.6%+5.1%+11.0%
Q3 2023-1.0%-1.0%+13.5%
Q2 2023-9.0%-13.1%-19.2%
Q1 2023+3.8%+3.1%+7.9%
Q4 2022-7.3%-4.1%-13.4%
Q3 2022-9.5%-5.4%+20.6%
Q2 2022-0.2%-1.4%+3.8%
Q1 2022-7.1%-2.3%-10.9%
Q4 2021-2.1%-6.4%-5.2%
Q3 2021-6.5%+0.6%+5.7%
Q2 2021-2.7%-0.6%+0.8%
Q1 2021+15.2%+17.3%+23.4%
Q4 2020-3.4%-1.2%-4.8%
Q3 2020-2.4%-5.5%+7.5%
Q2 2020+6.2%-0.6%-4.2%
Q1 2020+1.6%+2.7%+16.8%
Q4 2019+5.8%+6.3%-8.2%
Q3 2019-1.2%-1.9%-0.9%
Q2 2019-2.1%+1.6%+0.9%
Q1 2019-2.2%-0.3%+9.3%
Q4 2018+1.1%+1.0%+3.3%
Q3 2018-17.4%-18.8%-15.1%
Q2 2018-3.1%-1.3%+4.2%
Q1 2018-2.7%-5.9%-3.3%
Q4 2017+3.7%+7.4%+4.3%
Q3 2017+1.4%+2.0%+9.5%
Q2 2017-1.5%+0.4%-2.8%
Q1 2017-2.4%-3.2%-2.2%
Q4 2016+5.8%+7.4%+10.0%
Q3 2016-5.6%-5.0%-8.0%
Q2 2016-1.9%-3.0%-3.4%
Q1 2016+2.7%
Q4 2015+0.2%
Q3 2015-4.1%
Q2 2015+2.1%
Q1 2015+4.1%
Q4 2014+8.5%
Q3 2014-2.6%
Q2 2014+2.7%
Q1 2014+0.9%
Q4 2013-2.2%
Q3 2013+3.4%
Q2 2013+0.6%
Q1 2013+2.8%
Q4 2012-6.2%
Q3 2012-0.1%
Q2 2012-2.7%
Q1 2012+6.0%
Q4 2011+0.1%
Q3 2011+5.0%
Q2 2011+3.7%
Q1 2011+3.1%
Q4 2008-2.2%
Q4 2010-2.2%
Q3 2010+2.2%
Q3 2009+2.2%
Q2 2009+3.6%
Q2 2010+3.6%
Q1 2010-4.7%
Q1 2009-4.7%
Q4 2009-4.7%

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