Equifax shares fall on weak 2025 guidance

EditorSenad Karaahmetovic
Published 02/06/2025, 07:42 PM
Equifax shares fall on weak 2025 guidance

NEW YORK - Equifax Inc . (NYSE:EFX) reported fourth-quarter earnings that slightly beat analyst estimates, but shares fell 2.6% in after-hours trading as the company’s 2025 guidance came in below expectations.

The credit reporting agency posted adjusted earnings per share of $2.12, edging past the consensus estimate of $2.11. Revenue for the quarter reached $1.42 billion, up 7% YoY but slightly below the $1.44 billion analysts had projected.

Equifax’s fourth-quarter performance was bolstered by strong growth in its U.S. mortgage business, which saw revenue surge 29% YoY. However, the company’s outlook for 2025 disappointed investors. Equifax forecasts full-year 2025 adjusted EPS of $7.25 to $7.65, well below the $8.74 consensus. Revenue guidance of $5.89 billion to $6.01 billion also fell short of analysts’ expectations of $6.28 billion.

CEO Mark W. Begor commented on the results, stating, "Equifax delivered fourth quarter revenue of $1.419 billion, up 7% on a reported basis and 9% on a local currency basis, led by very strong 29% U.S. Mortgage revenue growth and continued significant New Product Innovation performance with a Vitality Index of 12%."

The company’s 2025 guidance reflects an anticipated 12% decline in U.S. mortgage hard credit inquiries, compared to a 10% drop in 2024. This outlook suggests ongoing challenges in the U.S. housing market may continue to impact Equifax’s mortgage-related business.

For the first quarter of 2025, Equifax expects adjusted EPS between $1.33 and $1.43, below the $1.82 consensus estimate. The company projects Q1 revenue of $1.39 billion to $1.42 billion, also falling short of the $1.52 billion analysts had forecast.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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