) is set to report fourth-quarter fiscal 2013 results on Feb 12.
Last quarter, it posted a positive surprise of 2.27%. Let us see
how things are shaping up for this announcement.
Factors to Consider This Past Quarter
Equifax posted mixed third-quarter results with the bottom
line beating the Zacks Consensus Estimate but the top line
missing the same. Nonetheless, the company's revenues increased
on a year-over-year basis aided by strong growth across its
Equifax's focus on product innovation, broadening of data
assets through acquisitions and continued share gains in North
America are encouraging. We believe Equifax is well positioned to
benefit from its leadership in important markets and strength in
Given the company's strong correlation to consumer and
financial markets as well as its U.S. and European exposure, we
see a gradual improvement in results. Moreover, an improving
mortgage environment is a big positive for the stock. However,
Automatic Data Processing Inc.
) and Moody's Corp. is a concern.
Our proven model does not conclusively show that Equifax is
likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
The expected surprise prediction for Equifax is 0.00% since both
the Most Accurate estimate and the Zacks Consensus Estimate stand
at 91 cents per share.
Equifax's Zacks Rank #2 (Buy) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Another Stock to Consider
Here is another company, which you may want to consider as our
model shows that it has the right combination of elements to post
an earnings beat this quarter:
), with Earnings ESP of +20.00% and a Zacks Rank #2.
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