Market Overview

Equifax's Earnings: A Preview

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On Wednesday, October 21, Equifax (NYSE: EFX) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share (EPS)?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Equifax reporting earnings of $1.4 per share on sales of $946.63 million. Equifax earnings in the same period a year ago was $1.48 per share. Quarterly sales came in at $895.70 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings. When a company posts earnings or revenue above or below the consensus estimate, it has posted an "earnings surprise."

If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 5.41%. Revenue would be up 5.69% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.27 1.29 1.49 1.44
EPS Actual 1.60 1.40 1.53 1.48
Revenue Estimate 913.00 M 911.81 M 896.00 M 871.22 M
Revenue Actual 982.80 M 957.90 M 905.80 M 895.70 M

Stock Performance

Shares of Equifax were trading at $158.61 as of October 19. Over the last 52-week period, shares are up 14.37%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Equifax is scheduled to hold the call at 08:30:00 ET and can be accessed here: https://investor.equifax.com/news-and-events/events-and-presentations

 

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