Equifax's Q1 Earnings Call: Our Top 5 Analyst Questions
Equifax's first quarter results were shaped by broad-based growth across non-mortgage segments and positive momentum in new product rollouts, leading to a market reaction that reflected investor approval. Management credited the strong performance to the accelerated adoption of its cloud-native platform and the introduction of proprietary solutions, such as the 'TWIN-powered' mortgage tool that combines employment, income, and credit data. CEO Mark Begor stated, 'Our strong first quarter is a proof point to the power of the Equifax cloud as our team can now fully focus on growth, innovation and customers.'
Is now the time to buy EFX? Find out in our full research report (it's free).
Revenue: $1.44 billion vs analyst estimates of $1.42 billion (3.8% year-on-year growth, 1.7% beat)
Adjusted EPS: $1.53 vs analyst estimates of $1.40 (9% beat)
Adjusted EBITDA: $423.1 million vs analyst estimates of $404.4 million (29.3% margin, 4.6% beat)
The company slightly lifted its revenue guidance for the full year to $5.97 billion at the midpoint from $5.95 billion
Management reiterated its full-year Adjusted EPS guidance of $7.45 at the midpoint
Operating Margin: 16.4%, in line with the same quarter last year
Market Capitalization: $33.22 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Jeff Meuler (Baird) asked about the scale and risks of federal government opportunities for TWIN. CEO Mark Begor emphasized constructive discussions in Washington and sees 'significant opportunities for future growth' as states and agencies focus on program integrity.
Andrew Steinerman (JPMorgan) questioned the seasonality in free cash flow. CFO John Gamble explained that first-quarter free cash flow is always lower due to the timing of variable compensation payments, but normalized growth would exceed 20% year-over-year.
Kyle Peterson (Needham & Company) pressed on whether recent volatility was fully reflected in guidance. Begor responded that the outlook incorporates current run rates and mortgage market trends observed through late April, but uncertainty in the second half drove a cautious stance.
Shlomo Rosenbaum (Stifel) inquired about financial clients' behavior under macro uncertainty. Begor said banks are monitoring subprime delinquencies and consumer confidence, but have not yet tightened credit or initiated significant portfolio reviews.
Arthur Truslove (Citi) asked how much cloud transformation contributed to USIS's non-mortgage acceleration. Begor attributed most of the improvement to post-cloud execution, noting increased commercial focus and new product momentum.
The StockStory team will watch for (1) adoption and revenue growth from new TWIN-powered products in mortgage, auto, and personal loans; (2) further penetration into government and state agency contracts, especially as the Social Security Administration agreement ramps; and (3) the sustainability of operating margins as cloud transformation benefits are realized. Execution on the capital return strategy and resilience in recurring revenue streams will also serve as key indicators of business health.
Equifax currently trades at $267.45, up from $215.01 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free).
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
37 minutes ago
- Bloomberg
Bezel Disrupting the Luxury Re-Sale Watch Market
Since being founded in 2022, Bezel has become a heavy hitter in the luxury watch re-sale market. Quaid Walker, Bezel's Co-Founder & CEO, joined Bloomberg Open Interest on Friday with Matt Miller and Katie Greifeld. (Source: Bloomberg)
Forbes
42 minutes ago
- Forbes
These 5 Below Book Value REITs Are Paying Dividends
Below book value REITs getty These five real estate investment trusts trade below their book value and they all pay dividends. They represent the diversity found among REITs: one has a multifamily-oriented approach. One favors mortgage assets. Another is involved in real estate projects for the regulated cannabis industry. The market caps vary widely as well. The smallest has market capitalization of just over $128 million. The largest has a market cap of $5.94 billion. Several of these names are components of the Russell 2000 small caps exchange traded fund. All are New York Stock Exchange listed Angel Oak Mortgage REIT. Angel Oak Mortgage weekly price chart, 6 20 25. This real estate investment trust is involved mortgage-related assets including non-conventional loans (known as non-QM). Angel Oak has a market cap of $213.39 million. It's a holding of the Russell 2000 small caps ETF. The REIT trades at 85% of its book value and pays a 14.10% dividend. The current price of $9.09 is below a down-trending 50-day moving average and below the mid-2024 peak of just above $11.50. Apple Hospitality REIT. Apple Hospitality REIT weekly price chart, 6 20 25. Apple Hospitality is a hotel and motel REIT with a market cap of $2.76 billion. It's a Russell 2000 small caps ETF holding. Now trading at a 14% discount to book, Apple pays a dividend of 8.42%. The price-earnings ratio is 14.64. The debt-to-equity ratio is .51. The weekly chart shows that the price in April 2025 took out the previous low from September 2022. It's bounced since then but the 50-week moving average just crossed below the 200-week moving average, a sign of the recent underlying weakness. Innovative Industrial Properties. Innovative Industrial Properties weekly price chart, 6 20 25. This REIT invests in the real estate properties of the state-licensed cannabis industry. The market cap is $1.61 billion. Innovative Industrial is a holding of the Russell 2000 small caps ETF. It's available for purchase at 86% of its book value. The company offers investors a 12.24% dividend. The price currently trades below both the 50-week and the 200-week moving averages. In April 2025, it dropped below the April 2023 low, a previous support level. Lument Finance Trust. Lument Finance Trust weekly price chart, 6 20 25. This one is a mortgage REIT with a market cap of just $130.55 million. It trades at a 25% discount to its book value. The dividend is 12.83%. The price-earnings ratio is 12.53 and the debt-to-equity ratio is 3.53. Lument Finance is lightly traded with an average daily volume of just 121,000 shares. The price is in an uptrend on the weekly chart above. Note that it trades above the 50-week and the 200-week moving averages. Rithm Capital. Rithm Capital weekly price chart, 6 20 25. Rithm Capital is another of the mortgage REITs. The market cap is $5.95 billion. It trades at a 9% discount to book value with a price-earnings ratio of 9.37. The debt-to-equity ratio is 4.34. Rithm offers a 8.91% dividend. Piper Sandler in April upgraded their opinion of the REIT from 'neutral' to 'overweight.' On the weekly chart above, you can see how the price is in an uptrend, now trading above the 50-week and the 200-week moving averages. Stats courtesy of Charts courtesy of No artificial intelligence was used in the writing of this post. More analysis and commentary at
TechCrunch
44 minutes ago
- TechCrunch
X app code points to a physical card coming to X Money
X's plans for a payments service may extend beyond the digital realm, new data suggests. According to findings from mobile app intelligence firm App Sensa, the X app has been updated over the past few weeks with several references related to a physical debit card, which can be customized with your X username. Dozens of new strings of code in the X app reference various actions you can take with the new debit card, including checking its shipping status, activating your card after it arrives, reporting your card lost or stolen, locking the card, setting a PIN, and more. Multiple strings also include the terms 'physical_card_option' as well as just 'physical,' the data indicates. Image Credits:App Sensa The news follows X CEO Linda Yaccarino's January announcement that Visa would be the company's first partner for the X Money service, which will allow users to instantly fund their X Wallet accounts via Visa Direct. She explained that the new service would enable peer-to-peer (P2P) payments by connecting with users' debit cards and would offer the option to instantly transfer funds to your bank account. Yaccarino also noted that this would be the 'first of many' big announcements about X Money arriving this year. This suggests that X is on a path that will see it more broadly competing with other digital banks and payment services in the near future. Image Credits:App Sensa To support its venture into payments, X has been registering for money transmitter licenses across the U.S. for over a year. As of December 2023, the company was licensed for payment processing in a dozen states. It has since increased its registrations to include 40 states, plus Washington, D.C. There are other references in the X app's code that tell us more about how this new payment card may work. For instance, some strings refer to 'cashback' and others to 'deferred debit.' It also appears you may be able to cancel your virtual card independently of the physical card and vice versa. Techcrunch event Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $200+ on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW Plus, the code suggests X could be pursuing relationships with other partners, as both MasterCard and Amex are listed as supported payment card brands. Image Credits:App Sensa X owner Elon Musk has long envisioned the app formerly known as Twitter as more than a social network. In November 2022, he shared his plans to turn X into an 'everything app' that would include things like payments and banking, as well as better support for videos and creator content. Last year, X was spotted working on the addition of a Payments button that would be added to the site's main navigation bar. X has not shared when specifically it plans to announce X Money besides sometime 'later this year,' per Yaccarino's earlier post. X did not respond to a request for comment.
