News Buzz: Equifax Inc. (NYSE: EFX)

On Monday, Equifax Inc. (NYSE: EFX) shares recorded trading volume 644,366 shares as compared to its average volume of 1,235,008 shares. The shares price traded between $109.30 and $111.25 during the last trading session above/below with -0.22% at $110.22. The company has 120.7M shares outstanding and market value of 13.304B.

Equifax Inc. (EFX) recently reported financial results for the quarter and full year ended December 31, 2018.

Financial Results Summary

The company stated revenue of $835.3M in the fourth quarter of 2018, a slight decrease from the fourth quarter of 2017 and a 2 percent raise in local currency.

Fourth quarter diluted EPS attributable to Equifax was $0.21, a decrease of 85 percent as contrast to the fourth quarter of 2017.

Net income attributable to Equifax of $25.6M was down 85 percent contrast to the fourth quarter of 2017.

For the full year 2018, revenue was $3.4B, a 1 percent raise from 2017 and a 2 percent raise in local currency. Diluted EPS attributable to Equifax was $2.47, a 49 percent decrease from the full year 2017. Net income attributable to Equifax of $299.8M was down 49 percent contrast to the full year 2017.

International fourth quarter results

  • Total revenue was $236.4M in the fourth quarter of 2018, a decrease of 3 percent from the fourth quarter of 2017 and an raise of 5 percent on a local currency basis. Operating margin for International was 6.6 percent in the fourth quarter of 2018 contrast to 16.6 percent in the fourth quarter of 2017. Adjusted EBITDA margin for International was 32.4 percent in the fourth quarter of 2018 contrast to 28.3 percent in the fourth quarter of 2017.
  • Asia Pacific revenue was $76.5M, down 3 percent from the fourth quarter of 2017 and up 3 percent on a local currency basis.
  • Europe revenue was $75.9M, up 2 percent from the fourth quarter of 2017 and up 5 percent on a local currency basis.
  • Latin America revenue was $47.7M, down 14 percent from the fourth quarter of 2017 and up 8 percent on a local currency basis.
  • Canada revenue was $36.3M, up 1 percent from the fourth quarter of 2017 and up 5 percent on a local currency basis.

Adjusted EPS and Adjusted EBITDA Margin

  • Adjusted EPS attributable to Equifax was $1.38, down 1 percent contrast to the fourth quarter of 2017. This financial measure for 2018 excludes the foreign currency impact from Argentina being a highly inflationary economy and the realignment of resources and other costs. The financial measure for 2017 excludes the impact of tax legislation enacted in 2017. The financial measure for both 2018 and 2017 excludes acquisition-related amortization expense of certain purchased intangibles, costs related to the 2017 cybersecurity incident, and the income tax effects of stock awards recognized upon vesting or settlement. These items are net of associated tax impacts and are described more fully in the attached Q&A.
  • Adjusted EBITDA margin was 33.2 percent, contrast to 34.8 percent in the fourth quarter of 2017. These financial measures for 2018 and 2017 have been adjusted for certain items, including costs related to the 2017 cybersecurity incident, which affect the comparability of the underlying operational performance and are described more fully in the attached Q&A.
  • Full year adjusted EPS attributable to Equifax was $5.79, down 3 percent from the previous year period. Full year adjusted EBITDA margin was 33.7 percent contrast to 36.8 percent in 2017. These financial measures for 2018 and 2017 have been adjusted for certain items, including costs related to the 2017 cybersecurity incident, which affect the comparability of the underlying operational performance and are described more fully in the attached Q&A.

2019 First Quarter and Full Year Guidance

  • For the first quarter of 2019, we expect stated revenue to be between $840 and $855M, reflecting local currency growth as contrast to the fourth quarter of 2018 of flat to 2%, offset by an predictable 3% negative impact of foreign exchange. Adjusted EPS is predictable to be between $1.15 and $1.20 per share. The impact of foreign exchange on adjusted EPS contrast to the first quarter of 2018 is predictable to be negative $0.05per share. Factors impacting the first quarter of 2019 revenue and adjusted EPS include an predictable approximate 13% decline in mortgage market inquiries impacting our USIS and EWS units, and higher Corporate costs principally for security and related technology that raised substantially from the first quarter through the fourth quarter of 2018.
  • We expect full year 2019 stated revenue to be between $3.425 and $3.525B, reflecting local currency growth as contrast to 2018 of 2% and 5%, partially offset by an predictable just over 1% negative impact of foreign exchange. Adjusted EPS is predictable to be between $5.60 and $5.80 per share. The impact of foreign exchange on adjusted EPS contrast to 2018 is predictable to be negative $0.08 per share. Factors impacting 2019 revenue and adjusted EPS include an predictable approximate 5% decline in mortgage market inquiries, and higher Corporate costs principally for security and related technology.

EFX quick ratio for most recent quarter was 1.10 while current ratio for time period was 1.10. In most recent quarter, LT Debt/Equity ratio was listed at 0.85 and Total Debt/Equity ratio was noted at 0.85.

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