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S&P 500 (NYSE:SPY) component Equifax Inc. (NYSE:EFX) will unveil its latest earnings on Wednesday, July 25, 2012. Equifax provides information solutions, employment and income verification, and human resources business process outsourcing services.
Equifax Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 72 cents per share, a rise of 18% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 68 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 72 cents during the last month. For the year, analysts are projecting profit of $2.87 per share, a rise of 13.9% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 70 cents per share against a mean estimate of profit of 65 cents per share.
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A Look Back: In the first quarter, profit rose 24.8% to $71.5 million (58 cents a share) from $57.3 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 10.6% to $522.7 million from $472.6 million.
Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price rose $5.35 (12.2%), from $43.70 to $49.05. The stock price saw one of its best stretches over the last year between July 6, 2012 and July 13, 2012, when shares rose for six straight days, increasing 3.8% (+$1.78) over that span. It saw one of its worst periods between June 14, 2012 and June 21, 2012 when shares fell for six straight days, dropping 3.5% (-$1.68) over that span.
Wall St. Revenue Expectations: On average, analysts predict $530.9 million in revenue this quarter, a rise of 9% from the year-ago quarter. Analysts are forecasting total revenue of $2.14 billion for the year, a rise of 9.2% from last year’s revenue of $1.96 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.7% in the second quarter of the last fiscal year, 3.5% in the third quarter of the last fiscal year and 5.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.74 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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