Equifax Q4 Earnings Beat, Revenues Miss Despite Strong Segments

Core Insights - Equifax Inc. reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2] Financial Performance - Adjusted earnings were $2.12 per share, surpassing the Zacks Consensus Estimate and reflecting a 17.1% increase year-over-year [2] - Total revenues reached $1.4 billion, missing the consensus estimate by 1.5% but growing 6.8% year-over-year [2] Segment Performance - Workforce Solutions segment revenues totaled $598.1 million, a 7% increase year-over-year, but missed estimates [3] - USIS segment revenues were $472.5 million, growing 10% year-over-year and beating expectations [4] - International division revenues amounted to $348.8 million, up 3% year-over-year, but lagged projections [5] - Latin America revenues increased 1% on a reported basis and 29% on a local-currency basis [6] Operating Results - Adjusted EBITDA for Q4 2024 was $501.9 million, a 12.5% increase year-over-year, with an adjusted EBITDA margin of 35.4% [7] - Workforce Solutions' adjusted EBITDA margin improved to 51.9% from 51.2% year-over-year [8] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q4 were $169.9 million, down from $468.2 million at the end of Q3 [9] - Long-term debt decreased to $4.3 billion from $4.7 billion in the previous quarter [9] - Cash generated from operating activities was $324.8 million, with capital expenditures totaling $118.9 million [9] Guidance - For Q1 2025, Equifax expects revenues of $1.39-$1.42 billion, lower than the Zacks Consensus Estimate of $1.51 billion [10] - For 2025, revenue guidance was raised to $5.89-$6.01 billion, but still below the Zacks Consensus Estimate of $6.28 billion [11]