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Equifax (EFX) to Report Q2 Earnings: What's in the Cards?

Equifax Inc. EFX is scheduled to report second-quarter 2020 results on Jul 22, after market close.

Let’s check out the expectations in detail.

Q2 Expectations        

The Zacks Consensus Estimate for second-quarter revenues stands at $923.62 million, indicating growth of 4.9% from the year-ago period reported figure. The consensus mark is higher than the guided range of $785-$805 million.

Segment-wise, the consensus mark for U.S. Information Solutions segment revenues is pegged at $343 million, implying an improvement of 3% from the year-ago quarter reported figure. Strength in online non-mortgage revenues is likely to have aided the segment.

The Zacks Consensus Estimate for International segment revenues is pegged at $156 million, indicating decline of 31.9% year over year. Significant declines in Canada and weakening trend in both the credit reference agencies (CRA) and the debt management businesses in Europe are expected to have weighed on the segment.

The consensus mark for Global Consumer Solutions segment revenues stands at $80 million, suggesting a decrease of 9.1% from the year-ago quarter reported figure. COVID-19-induced impacts are likely to have weighed on the segment.

The Zacks Consensus Estimate for Workforce Solutions segment revenues is pegged at $324 million, indicating growth of 40.9% from the year-ago quarter reported figure. Growth in unemployment insurance claims management under Employer Services is expected to have partially offset the decline in the company’s W2 business and Talent Management businesses (under Workforce Analytics) due to limited new customer acquisition.

The Zacks Consensus Estimate for earnings per share is pegged at $1.30, indicating decline of 7.1% from the year-ago quarter reported figure. The consensus mark is higher than the guided range of 78-88 cents.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Equifax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Equifax has an Earnings ESP of -0.15% and a Zacks Rank #2.

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. Price and EPS Surprise

Equifax, Inc. price-eps-surprise | Equifax, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2020 earnings.

Waste Management WM has an Earnings ESP of +12.9% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv APTV has an Earnings ESP of +13.24% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +2.42% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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