Analyst Note| Rajiv Bhatia, CFA |
Workforce Solutions continues to drive strong revenue and earnings growth at wide-moat-rated Equifax. Revenue of $1.21 billion was 8% above the FactSet consensus of $1.12 billion and likewise adjusted EBITDA of $431 million and adjusted EPS of $1.97 easily topped the consensus estimates of $357 million and $1.51, respectively. The firm also raised its full-year 2021 revenue outlook by 5% and adjusted earnings outlook by 9% at the midpoint. Equifax’s growth is driven by much more than just mortgage volume growth and we expect to meaningfully raise our fair value estimate from our current estimate of $190 per share.