Equifax
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Equifax beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.
Margins improved across the board.
Revenue details
Equifax notched revenue of $509.7 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $501.4 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $482.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.68. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share on the same basis. GAAP EPS of $0.61 for Q4 were 22% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 61.9%, 200 basis points better than the prior-year quarter. Operating margin was 24.7%, 190 basis points better than the prior-year quarter. Net margin was 14.6%, 170 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $500.6 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $2.80.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 102 members out of 115 rating the stock outperform, and 13 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Equifax a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Equifax is outperform, with an average price target of $40.20.
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