Equifax Analysts Cut Their Forecasts After Q1 Results
Portfolio Pulse from Avi Kapoor
Equifax Inc. (NYSE:EFX) reported Q1 sales of $1.389 billion, missing estimates of $1.400 billion, and issued Q2 guidance below market expectations. Adjusted Q2 earnings are expected to be $1.65 to $1.75 per share, against estimates of $1.87 per share, with revenue projections of $1.41 to $1.43 billion, compared to expectations of $1.44 billion. Despite a challenging mortgage market, Equifax saw a 7% revenue increase and a strong performance in its non-mortgage business. Following the announcement, Equifax shares dropped 8.5% to $217.51. Analysts from Baird and JP Morgan adjusted their price targets on Equifax to $260 and $273, respectively.
April 19, 2024 | 12:32 pm
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NEGATIVE IMPACT
Equifax reported lower than expected Q1 sales and issued Q2 guidance below market expectations, leading to an 8.5% drop in its stock price. Analysts from Baird and JP Morgan revised their price targets downwards.
The direct impact on Equifax's stock price following the earnings miss and lowered guidance is evident in the 8.5% drop. The adjustments in price targets by Baird and JP Morgan further validate the negative short-term outlook for EFX. Despite the strong performance in non-mortgage sectors, the overall negative guidance and earnings miss are likely to overshadow these positives in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100