Equifax reports Q4 revenue below estimates on slower hiring, shares fall

Equifax

06/02/2025 16:14

Feb 6 (Reuters) - Credit ratings firm Equifax's  EFX.N 
fourth-quarter revenue fell short of estimates, hurt by a weaker
hiring market and slower-than-expected mortgage growth as
interest rates remain elevated, sending shares down over 6.5% on
Thursday.
    The Atlanta, Georgia-based company's revenue rose 7%,
powered by a 29% jump in U.S. mortgage revenue, but missed
analysts' estimate of $1.44 billion, according to data compiled
by LSEG.
    Revenue from its workforce solutions unit, the company's
largest operating segment, increased by 7% to reach $598.1
million. 
    The company, however, flagged weakness in the unit, which
vets potential employees for businesses, due to a slower hiring
market in the U.S.
    Demand for mortgages influences results at Equifax, which
relies on providing credit reports and verification services.   
 
    Although the Federal Reserve's cut of 100 basis points has
provided some relief, possible future cuts have led many
potential homebuyers to wait for a more favorable market.
    Adjusted profit came in at $2.12 per share in the three
months ended Dec. 31, compared with Wall Street expectations of
$2.10 per share.
    Equifax, along with Experian  EXPN.L  and TransUnion
 TRU.N , is one of the three largest consumer credit reporting
agencies in the U.S.
    The company sees 2025 revenue between $5.89 billion and
$6.01 billion as mortgage credit inquiries in the U.S. missing
analysts' expectation of $6.27 billion.

 (Reporting by Ateev Bhandari in Bengaluru; Editing by Tasim
Zahid)
 ((Ateev.Bhandari@thomsonreuters.com;))