Analyst Note| Rajiv Bhatia |
Wide-moat Equifax reported a strong quarter with revenue and earnings topping consensus estimates. Revenue increased 22% and finished 6% ahead of the FactSet consensus; adjusted earnings per share of $1.82 also handily beat the consensus of $1.60. U.S. Information Solutions (USIS) mortgage and Workforce Solutions drove the revenue growth as low interest rates drove mortgage activity and the firm’s unemployment claims processing business is seeing elevated volumes. Mortgage volumes are difficult to predict and remain an important wildcard in our view as mortgage drives both the core credit bureau and Workforce Solutions. We plan on maintaining our fair value estimate of $168.