Latest news with #MarkBegor
Yahoo
3 days ago
- Business
- Yahoo
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.
Bloomberg
22-04-2025
- Automotive
- Bloomberg
Stock Movers: Tesla, Equifax, Northrop Grumman
On this episode of Stock Movers: - Tesla (TSLA) backed away from an earlier view for 2025 sales growth and pledged to revisit its outlook next quarter, a sign that tariffs, an aging vehicle lineup and the backlash against Chief Executive Officer Elon Musk are having an impact on the electric-vehicle maker. The company on Tuesday reported adjusted earnings of 27 cents per share for the first quarter, below the average analyst estimate. Tesla omitted an earlier prediction that sales would return to growth for the full year, saying instead that it's 'making prudent investments that will set up' the vehicle business for growth. That will depend on factors including production increases and the 'broader macroeconomic environment.' Shares in the EV maker were little changed after the earnings release. - Equifax (EFX) shares rose the most since November 2022 on the news the credit-reporting agency's first-quarter profit beat estimates. This was despite the Atlanta-based firm declined to raise its guidance, citing the tariff-induced uncertainty in the economy and falling consumer confidence. 'Given the strength in the first quarter and our current run rates in key verticals, we would normally be increasing our 2025 revenue and adjusted EPS guidance' Chief Executive Officer Mark Begor said on a call with analysts. - Northrop Grumman (NOC) reported first-quarter profit that missed analysts' expectations and cut its earnings forecast for the year as costs mounted for its next-generation B-21 stealth bomber. The shares fell the most since the early days of the pandemic on Tuesday, after Northrop said per-share profit declined by 47% in the first quarter, primarily due to new loss provisions tied to the B-21. Northrop, which for 2023 took a nearly $1.6 billion pretax charge on the program, added $477 million to the tally, as manufacturing costs rose and the company invested in its production systems to speed the program's ramp-up.
Yahoo
22-04-2025
- Business
- Yahoo
Equifax's quarterly profit lifted by better-than-expected mortgage business
(Reuters) -Credit bureau Equifax beat Wall Street expectations for first-quarter profit on Tuesday, buoyed by a smaller-than-expected drop in inquiries for mortgage credit reports. The company also kept its annual forecast unchanged despite economic uncertainties, sending its shares up 7.7% before the bell. Wall Street had anticipated mortgage inquiries to be a source of positive surprise in the first quarter, given the slight dip in the 30-year mortgage rate — the interest rate for the most popular U.S. home loan — during February and March. U.S. mortgage inquiries fell 9% in the quarter from a year earlier, better than Equifax's expectation of a 13% decline. CEO Mark Begor said Equifax was maintaining its full-year 2025 outlook despite the strong first-quarter results, due to "significant uncertainty in the global macroeconomic environment and direction of U.S. inflation and interest rates." Uncertainty around U.S. trade policy may lead financial institutions to tighten consumer lending standards. This would result in less business for credit bureaus like Equifax, which sell credit reports and data analytics to consumer and mortgage lenders. The Atlanta, Georgia-based company still forecasts annual revenue between $5.91 billion and $6.03 billion; adjusted profit per share is expected to be between $7.25 and $7.65. On an adjusted basis, Equifax earned $1.53 per share in the first quarter, beating analysts' expectation of $1.40 per share, according to estimates compiled by LSEG. The company also unveiled a $3 billion buyback program that it expects to complete over about four years. Equifax's shares have fallen 15.5% so far this year, as of last close, compared with the benchmark S&P 500 index's 12.3% fall. Sign in to access your portfolio
Reuters
22-04-2025
- Business
- Reuters
Equifax's quarterly profit lifted by better-than-expected mortgage business
April 22 (Reuters) - Credit bureau Equifax (EFX.N), opens new tab beat Wall Street expectations for first-quarter profit on Tuesday, buoyed by a smaller-than-expected drop in inquiries for mortgage credit reports. The company also kept its annual forecast unchanged despite economic uncertainties, sending its shares up 7.7% before the bell. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Wall Street had anticipated mortgage inquiries to be a source of positive surprise in the first quarter, given the slight dip in the 30-year mortgage rate — the interest rate for the most popular U.S. home loan — during February and March. U.S. mortgage inquiries fell 9% in the quarter from a year earlier, better than Equifax's expectation of a 13% decline. CEO Mark Begor said Equifax was maintaining its full-year 2025 outlook despite the strong first-quarter results, due to "significant uncertainty in the global macroeconomic environment and direction of U.S. inflation and interest rates." Uncertainty around U.S. trade policy may lead financial institutions to tighten consumer lending standards. This would result in less business for credit bureaus like Equifax, which sell credit reports and data analytics to consumer and mortgage lenders. The Atlanta, Georgia-based company still forecasts annual revenue between $5.91 billion and $6.03 billion; adjusted profit per share is expected to be between $7.25 and $7.65. On an adjusted basis, Equifax earned $1.53 per share in the first quarter, beating analysts' expectation of $1.40 per share, according to estimates compiled by LSEG. The company also unveiled a $3 billion buyback program that it expects to complete over about four years. Equifax's shares have fallen 15.5% so far this year, as of last close, compared with the benchmark S&P 500 index's (.SPX), opens new tab 12.3% fall.
Yahoo
07-02-2025
- Business
- Yahoo
Equifax Inc (EFX) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
2024 Revenue: Up almost 8% on a reported and organic constant currency basis. Adjusted EPS: $7.29 per share, up over 8.5% versus last year. Cash Conversion: 89%, with free cash flow of $813 million, up 58%. Debt Leverage: Reduced to target levels of under 3 times. Fourth Quarter Revenue: $1.419 billion, up 7% reported, 9% organic constant currency. Fourth Quarter Adjusted EBITDA: $502 million, with a margin of 35.4%. Fourth Quarter Adjusted EPS: $2.12 per share. Workforce Solutions Revenue: Up 7% in the quarter. USIS Revenue: Up over 10% in the quarter. International Revenue: Up 11% in constant currency. 2025 Revenue Guidance: Expected to be about $5.95 billion, up 4.7% reported, 6% constant currency. 2025 Adjusted EPS Guidance: Expected to be $7.45 per share, up 2% over last year. 2025 Free Cash Flow Guidance: About $900 million, with cash conversion at about 95%. Warning! GuruFocus has detected 3 Warning Sign with EFX. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Equifax Inc (NYSE:EFX) achieved a strong financial performance in 2024, with revenue up almost 8% and adjusted EPS increasing by over 8.5%. The company successfully completed significant portions of its cloud transformation, with close to 85% of revenue now in the new Equifax Cloud. Equifax Inc (NYSE:EFX) reduced its debt leverage to target levels, achieving under 3 terms. The company signed 15 new strategic partnerships in 2024, including a notable partnership with Workday, expected to fuel future revenue growth. Equifax Inc (NYSE:EFX) delivered a record fourth-quarter adjusted EBITDA of over $500 million, marking a significant milestone for the company. Equifax Inc (NYSE:EFX) faced challenges in the US hiring and mortgage markets, which negatively impacted revenue growth. The company's fourth-quarter revenue was below October guidance due to weaker-than-expected performance in the mortgage and hiring sectors. USIS non-mortgage revenue growth was slightly below guidance, with declines in identity and fraud services. The company anticipates a 12% decline in US mortgage revenue credit inquiries in 2025 due to high mortgage rates. Equifax Inc (NYSE:EFX) expects a challenging environment in the US hiring market, forecasting an 8% decline in 2025 compared to 2024. Q: Can you explain the factors impacting EWS margins despite 7% revenue growth? A: Mark Begor, CEO, explained that the mortgage market decline and onboarding costs for new partners are impacting margins. John Gamble, CFO, added that growth in lower-margin products and continued investments in EWS are also factors. There is no change in payout ratios for TWN Record partners. Q: Without the mortgage and hiring headwinds, how would growth and EPS be affected? A: Mark Begor noted that without these headwinds, growth would be 200 basis points higher, assuming flat markets. John Gamble added that EPS would benefit from variable margins if the markets were flat. Q: What is the impact of the SSA contract extension on government revenue? A: Mark Begor stated that the SSA contract is a federal contract used for disability benefits eligibility, with higher prices impacting 2025 positively. The contract is separate from state-level CMS contracts. Q: How are you balancing capital allocation between dividends and buybacks? A: Mark Begor emphasized the focus on returning cash to shareholders through growing dividends and a multiyear buyback program, contingent on economic visibility, particularly in mortgage and hiring markets. Q: What are the expectations for TWN record growth in 2025? A: Mark Begor highlighted strong record additions in 2024 and expects continued growth in 2025, aligned with EWS's growth framework. The focus is on onboarding new partners and leveraging existing relationships. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
