Equifax Inc.

Equifax produced another all-around beat, growing non-mortgage revenue by 10% in constant currency as it met its Equifax 2025 strategic targets and the $200 million spending plan. Its first-quarter revenue of $1.302 billion was down 4.5% and 4.3% on an organic constant currency basis. Still, it exceeded the company’s expectations in the face of an extraordinary 58% mortgage market fall in the quarter. Equifax’s non-mortgage businesses, which accounted for roughly 80% of overall revenue in the quarter, performed well. The company is also making great strides toward transforming Equifax’s data and technologies. Besides, with connected datasets, quicker data delivery, higher data quality, and industry-leading enterprise-level security, the new Equifax cloud infrastructure enables always-on capabilities and accelerates the development of new products. Equifax may also benefit from its Equifax Cloud and Single Data Fabric in the long run by having a competitive advantage. Workforce Solutions once again delivered an excellent quarter, with non-mortgage revenue growth up 11% and total revenue down 8%. In addition, the company experienced strong NPI performance fueled by the uptake of its new Mortgage 36 solution. We give Equifax Inc. a ‘Hold’ rating with a revised target price.