Equifax Earnings: Steady Quarter and Intact Outlook

Equifax started the year on solid footing. Revenue of $1.30 billion and adjusted EPS of $1.43 beat the FactSet consensus estimates of $1.28 billion and $1.37 and the company’s guidance of $1.27 billion-$1.29 billion and $1.30-$1.40. In addition, Equifax maintained its full-year revenue and adjusted EPS outlook even as economic uncertainty rises. Following the earnings release, the shares are trading roughly 4 percentage points above the Morningstar US Market Index; we attribute the positive reaction to easing market concerns around recent banking issues affecting the credit bureaus. We note that Equifax has little exposure to regional banks and that larger banks have seen mostly stable deposit bases. Overall, there was little that would change our long-term view of the firm, and we will maintain our wide moat rating and $315 fair value estimate.