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Equifax Inc. EFX has reported impressive first-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
EFX’s adjusted earnings were $1.53 per share, outpacing the Zacks Consensus Estimate by 9.3% and increasing 2% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by 1.9% and grew 3.8% on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Equifax shares have declined 19.8% over the past three months compared with the 18.5% dip of the industry and the 15.8% fall of the Zacks S&P 500 composite.
Equifax, Inc. Price, Consensus and EPS Surprise
Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote
Segmental Information for EFX
Revenues in the Workforce Solutions segment totaled $618.6 million, rising 3% from the year-ago quarter and surpassing our projection of $605.1 million. Within the segment, Verification Services’ revenues of $502.2 million increased 5% from the year-ago quarter. Employer Services’ revenues of $116.4 million moved down 8% on a year-over-year basis.
The USIS segment’s revenues were $499.9 million, which gained 7% from the year-ago quarter and beat our estimated figure of $476.4 million. Within the segment, Online Information Solutions’ revenues of $448.1 million rose 7% year over year. Financial Marketing Services’ revenues were $51.8 million, increasing 10% from the year-ago quarter.
Revenues in the International division amounted to $323.5 million, up 1% and 7% year over year on a reported and local-currency basis, respectively. The metric missed our projection of $338.8 million.
Latin America’s revenues of $94.2 million increased 3% from the year-ago quarter on a reported basis and 16% on a local-currency basis. Revenues from Europe amounted to $86.6 million, flat year over year on a reported and 1% on a local-currency basis. Revenues from the Asia Pacific were $79.7 million, increasing 2% from the year-ago quarter on a reported basis and 7% on a local-currency basis. Canada’s revenues of $63 million moved down 4% from the year-ago quarter on a reported basis but gained 2% on a local-currency basis.
Equifax’s Operating Results
Adjusted EBITDA in the first quarter of 2025 amounted to $423.1 million, indicating a 4.5% increase on a year-over-year basis. The adjusted EBITDA margin was 29.3%, up 20 basis points from the year-ago quarter.
Workforce Solutions’ adjusted EBITDA margin was 50.1% compared with 51.1% in a year-ago quarter. The adjusted EBITDA margin for the USIS division was 34.1% compared with 32.7% in the first quarter of 2024. The adjusted EBITDA margin for the international segment was 24.1% in comparison with 24.3% in the year-ago quarter.