Equifax Inc. Earnings: Profit Rises for Fourth Straight Quarter

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S&P 500 (NYSE:SPY) component Equifax Inc. (NYSE:EFX) reported its results for the third quarter. Equifax provides information solutions, employment and income verification, and human resources business process outsourcing services.

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Equifax Inc. Earnings Cheat Sheet

Results: Net income for Equifax Inc. rose to $77.9 million (64 cents per share) vs. $66.7 million (54 cents per share) in the same quarter a year earlier. This marks a rise of 16.8% from the year-earlier quarter.

Revenue: Rose 10.9% to $543.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Equifax Inc. reported adjusted net income of 75 cents per share. By that measure, the company beat the mean estimate of 72 cents per share. It beat the average revenue estimate of $530.9 million.

Quoting Management: “While mortgage activity remains strong, the majority of our growth continues to come from core non-mortgage markets and strategic initiatives, as our investments in new product innovations, vertical market focus, and penetration of new markets continue to pay off,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “At this time, we expect the mortgage market to remain strong for the next few quarters. I am also optimistic that the momentum we have established will continue as we move into 2013.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose 24.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 5 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 10% to $535.8 million in the second quarter. The figure rose 10.6% in the first quarter from the year earlier and climbed 5.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 73 cents per share, down from 76 cents ninety days ago. Over the past sixty days, the average estimate for the fiscal year has reached $2.84 per share, a decline from $2.91.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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