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Equifax Inc EFX

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Another Beat-and-Raise Quarter for Equifax Driven by Workforce Solutions

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Equifax reported strong second-quarter results, with revenue and earnings topping consensus expectations. Revenue was $1.23 billion, above the FactSet consensus of $1.16 billion and the firm’s guidance of $1.14 billion-$1.16 billion. Adjusted EPS of $1.98 beat the consensus of $1.71 and guidance of $1.60-$1.70. Equifax raised its full-year revenue outlook by 3% at the midpoint to $4.76 billion-$4.80 billion, which implies a stronger back half of 2021 than the previous guidance. We will maintain our wide moat rating and expect to increase our fair value estimate by a mid- to high-single-digit percentage.

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Company Profile

Business Description

Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax’s credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders’ credit decisions. In addition, about a third of the firm’s revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.

Contact
1550 Peachtree Street N.W.
Atlanta, GA, 30309
T +1 404 885-8000
Sector Industrials
Industry Consulting Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 11,400

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