Release Date: July 19, 2023 at 5:13 PM ET
Equifax on Wednesday cut its full-year outlook, citing weakness in the mortgage market.
The credit reporting company expects full-year sales to be between $5.27 billion and $5.33 billion, compared with previous estimates of between $5.275 billion and $5.375 billion. Equifax EFX now expects adjusted earnings of $6.85 to $7.10 per share, down from previous guidance of $7.05 to $7.35 per share.
“we…
Equifax on Wednesday cut its full-year outlook, citing weakness in the mortgage market.
The credit reporting company expects full-year sales to be between $5.27 billion and $5.33 billion, compared with previous estimates of between $5.275 billion and $5.375 billion.Equifax
EFX
Adjusted earnings are now expected to be $6.85 to $7.10 per share, down from the previous guidance of $7.05 to $7.35 per share.
“We expect the U.S. mortgage market to continue to be weaker than expected in June,” Chief Executive Mark Beger said in a release Wednesday afternoon. The new outlook takes into account the “further adverse impact from the slowdown in the mortgage market and the loss of high-margin mortgage income.”
The stock fell 5% in after-hours trading.
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In addition, Equifax expects weak employment to persist throughout the year, but expects strong growth in its human resources government business to help offset the negative impact on its non-mortgage businesses.
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Equifax posted net income of $138.3 million, or $1.12 per share, in the second quarter, compared with net income of $200 million, or $1.63 per share, in the year-ago quarter.
Adjusted earnings per share fell from $2.09 to $1.71, but analysts were modeling $1.68 per share.
Begor said on the earnings call that Equifax has “exercised very well” its plan to cut cloud spending this year. “We are taking action to cut another $10 million in cloud spending in the second half,” he said.
Second-quarter revenue was roughly flat at $1.32 billion, compared with analysts’ expectations of $1.33 billion.
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