- Equifax Inc EFX reported revenue of $1.30 billion in the first quarter of 2023, down 4% Y/Y, beat the consensus of $1.28 billion.
- Workforce solutions revenue declined 8% year over year to $596.3 million, driven by an 11% year over year decline in verification services revenue.
- Workforce Solutions’ non-mortgage revenue grew 11% year over year, driven by solid growth in its government and talent solutions business.
- US sales of information solutions declined 3% year-over-year to $421.7 million due to lower sales from the online information solutions business.
- US Information Solution B2B non-mortgage revenue grew 8% year-over-year, with strong online non-mortgage revenue.
- International sales increased 1% year-over-year to $284.0 million on increased sales from all regions except Europe.
- The company recorded strong new product performance with a vitality index of 13%.
- In the first quarter, EFX signed a deal with acquire Boa Vista Serviços.
- The adjusted EBITDA margin fell to 29.2% from 35.5% in the previous year.
- Adjusted earnings per share fell 36% year over year to $1.43, ahead of the consensus of $1.37.
- outlook: EFX expects second-quarter revenue of $1.31-$1.33 billion (consensus $1.34 billion) and adjusted earnings per share of $1.60-$1.70 (Q1 estimate). $.81).
- Continued 2023 guidance is for revenue of $5.275-$5.375 billion (consensus $5.32 billion) and adjusted EPS of $7.05-$7.35 (consensus $7.16). .
- “We are excited about the new Equifax and remain confident in our long-term growth framework of 8-12% that will deliver higher margins and free cash flow,” said Mark W. Begor, CEO.
- The company said it is on track to deliver $200 million in projected spending cuts in 2023, including $120 million in spending and $80 million in capital expenditure cuts.
- price action: EFX shares closed up 0.06% at $194.91 on Wednesday.
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