Equifax sees 2024 revenue below estimates amid mortgage market slump

Equifax

16/10/2024 22:44

Oct 16 (Reuters) - Credit ratings firm Equifax  EFX.N 
said on Wednesday it expects full-year revenue below Wall Street
estimates, as higher-for-longer interest rates continued to
weigh on loan demand and kept the mortgage market stagnant,
sending shares down 5% after the bell.  
    Even as the U.S. Federal Reserve delivered its first rate
cut in four years in late September, borrowing costs remain
elevated. Demand for loans — particularly long-term fixed-rate
mortgages — has been subdued as borrowers wait for a more
favorable environment.
    The company, which assesses the creditworthiness of home
buyers, expects adjusted revenue for the full year between $5.70
billion and $5.72 billion, below average analysts' estimate of
$5.74 billion.   
    The firm's non-mortgage business accounted for 80% of its
third-quarter revenue. This strategy to boost non-mortgage
revenue growth is a part of the company's effort to become
resilient to the impacts of the mortgage market.
    The company's revenue rose 9% in the third quarter to $1.44
billion. Adjusted profit came in at $1.85 per share, compared
with $1.76 apiece a year earlier.
    "(We) remain confident in our long-term 8-12% revenue growth
framework that is expected to deliver higher margins and
accelerating free cash flow," Equifax CEO Mark Begor said in a
statement.
      
      

 (Reporting by Vedant Vinayak Vichare; editing by Alan Barona)
 ((mailto:Vedant.VinayakVichare@thomsonreuters.com))