Equifax (NYSE:EFX) will report its second-quarter 2023 results on July 19, after the market closes.

Equifax has an amazing track record of outperforming the Consensus Estimate in each of the last four quarters. The average level of surprise is 3.6%.

Expectations for the Second Quarter

The current average forecast for the top line is $1.32 billion, which is somewhat lower than the year-ago amount. The drop can be ascribed to a possible reduction in the United States mortgage market as a result of increased interest rates and lower mortgage origination.  

The Consensus Estimate for earnings per share (EPS) is $1.67, a 20.1% decrease year over year. In the last 60 days, the estimate has been revised downward by 1.2%. escalating operating expenditures and escalating client migration charges to the new Equifax cloud are likely to have had an impact on the company’s bottom line.

Data Segmentation

Our current estimate for second-quarter 2023 revenues from US Information Solutions (USIS) is $398.9 million, a 5.3% decrease from the second-quarter 2022 reported amount. Total International revenues are estimated to be the same as last year. Our current forecast is $293 million, representing a 2.4% increase over second-quarter 2022 results. Workforce Solutions revenue is predicted to increase 2.1% year over year. Our current estimate is $621.7 million.

The excellent non-mortgage revenue performance is likely to have boosted adjusted EBITDA. The USIS and International segments are predicted to increase by 25.6% and 24.7%, respectively, to $202 million and $72.4 million. Workforce Solutions’ adjusted EBITDA is expected to be $284.7 million, a 12.5% decrease from the previous year’s reported statistics.

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