Why Is Equifax (EFX) Up 14.9% Since Last Earnings Report?

Core Viewpoint - Equifax reported mixed Q1 2024 results, with earnings exceeding estimates but revenues falling short, leading to a 14.9% increase in shares since the last earnings report, outperforming the S&P 500 [1][2]. Financial Performance - Adjusted earnings per share were $1.5, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% year-over-year. Total revenues were $1.4 billion, missing estimates but up 6.7% from the previous year [2]. - Adjusted EBITDA for Q1 2024 was $404.6 million, reflecting a 7% increase year-over-year, with an adjusted EBITDA margin of 29.1%, down 10 basis points from the prior year [6]. Segment Performance - Workforce Solutions segment revenues were $602.8 million, slightly missing estimates, with Verification Services revenues at $476.5 million, up 5% year-over-year, while Employer Services revenues declined by 10% [3]. - USIS segment revenues reached $465.3 million, up 10% year-over-year, exceeding estimates, with Online Information Solutions revenues increasing by 12% [4]. - International division revenues totaled $321.3 million, gaining 13% year-over-year but missing estimates, with notable growth in Latin America at 65% year-over-year [5]. Balance Sheet & Cash Flow - At the end of Q1, cash and cash equivalents were $201 million, down from $216.8 million in the previous quarter. Long-term debt remained stable at $4.7 billion [8]. - Cash generated from operating activities was $252.7 million, with capital expenditures totaling $131.9 million and dividends distributed amounting to $48.2 million [8]. Future Outlook - For Q2 2024, Equifax expects revenues between $1.41 billion and $1.43 billion, with adjusted EPS projected at $1.65 to $1.75. For the full year, revenues are anticipated to be between $5.67 billion and $5.77 billion, with adjusted EPS of $7.2 to $7.5 [10]. - Recent estimates have shown a downward trend, with a consensus estimate shift of -7.5% [11].