Equifax Inc. has revised its full-year revenue and earnings outlook, citing a weaker-than-expected U.S. mortgage market. The credit-reporting company now projects full-year revenue to be in the range of $5.27 billion to $5.33 billion, compared to its previous forecast of $5.275 billion to $5.375 billion. Equifax now expects adjusted earnings per share to be between $6.85 and $7.10, down from the previous guidance of $7.05 to $7.35. Chief Executive Mark Begor attributes the revised outlook to the negative impact of the weaker mortgage market and loss of high-margin mortgage revenue.
Equifax also anticipates a slowdown in hiring throughout the year, but expects stronger growth in its workforce government business to offset the negative effects on its non-mortgage business.
In the second quarter, Equifax reported net income of $138.3 million, or $1.12 per share, down from $200.6 million, or $1.63 per share, in the same period last year. Adjusted earnings per share declined to $1.71 from $2.09, slightly beating analysts’ estimates of $1.68. Revenue for the second quarter remained largely unchanged at $1.32 billion, slightly below analysts’ expectations.
Equifax’s CEO, Mark Begor, highlighted the company’s success in reducing cloud spending and mentioned plans for additional cloud-spending reductions of $10 million in the second half of the year.
Investors reacted to the news with a 5% decrease in Equifax’s shares during after-hours trading.
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