Equifax Projects Lower EPS and Revenue for Fiscal 2025

Equifax's guidance for fiscal 2025 indicates a decline in earnings per share and revenue forecasts, sparking concern among investors. The company expects adjusted EPS between $7.25 and $7.65, which is below analysts' expectations.

Date: 06-02-2025

AI Rating: 5

Equifax Earnings Outlook

Equifax's guidance for fiscal 2025 shows that the company expects adjusted earnings per share (EPS) to be in the range of $7.25 to $7.65, while analysts are forecasting a higher EPS of $8.74. This gap suggests that the company may not meet market expectations, which could lead to a negative impact on stock prices.

In the first quarter, Equifax anticipates adjusted EPS between $1.33 and $1.43, again coming short of the analysts' average expectation of $1.82. This adds to the concern regarding earnings performance in both the long and short term.

Revenue Projections

For fiscal 2025, Equifax has reported revenue expectations of between $5.89 billion and $6.01 billion, compared to analysts’ expectations, indicating that Equifax might not meet market revenue expectations as well. In the first quarter, the reported revenue is projected to be in the range of $1.39 billion to $1.42 billion.

Net Income and Growth

However, it's worth noting that Equifax recorded a net income of $174.0 million in the fourth quarter of 2024, which marks a 31% increase from $132.4 million in the prior year. Additionally, reported EPS was $1.39, an increase from $1.06 recorded previously. Adjusted EPS was also up 17%, reaching $2.12, slightly above analysts' expectations of $2.10 per share.

Revenue for the fourth quarter showed a 7% increase on a reported basis and a 9% increase based on local currency, suggesting that while the company is experiencing growth, the future guidance may not align with the positive trends shown previously. The CEO indicated a downward expectation of about 12% decline in U.S. hard mortgage credit inquiries, further suggesting a cautious outlook.

Stocks: EFX