Equifax Q3 Earnings Beat, Revenues Miss Despite Strong Segments

Core Viewpoint - Equifax Inc. reported mixed third-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2]. Financial Performance - Adjusted earnings were $1.8 per share, surpassing the Zacks Consensus Estimate and increasing by 5.1% year-over-year [2]. - Total revenues reached $1.4 billion, missing consensus estimates but growing by 9.3% compared to the previous year [2]. Segment Performance - Workforce Solutions segment revenues totaled $620 million, a 7% increase year-over-year, exceeding expectations [3]. - USIS segment revenues were $476.9 million, growing 12% year-over-year and also surpassing forecasts [3]. - International division revenues amounted to $344.9 million, up 9% year-over-year but missing expectations [3]. Regional Performance - Latin America's revenues increased by 21% year-over-year, while Europe and Asia Pacific saw increases of 11% [4]. - Canada's revenues remained flat compared to the previous year [4]. Operating Results - Adjusted EBITDA for Q3 2024 was $471.9 million, an 8% increase year-over-year, with an adjusted EBITDA margin of 32.7% [5]. - The adjusted EBITDA margin for Workforce Solutions was 51.6%, while USIS and international segments reported margins of 33.9% and 27.7%, respectively [5]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q3 were $468.2 million, significantly up from $181.9 million at the end of Q2 [6]. - Long-term debt remained stable at $4.7 billion, with cash generated from operating activities amounting to $479.5 million [6]. Guidance - For Q4 2024, revenue guidance was raised to $1.44-$1.46 billion, with adjusted EPS guidance increased to $2.08-$2.18 [6]. - For the full year 2024, revenue guidance was updated to $5.70-$5.72 billion, and adjusted EPS guidance was revised to $7.25-$7.35 [7].