Equifax Inc (NYSE:EFX) stock rose 5.57% (As on July 18, 11:25:23 AM UTC-4, Source: Google Finance) after the company forecast third-quarter revenue below Wall Street estimates as higher-for-longer interest rates continue to derail recovery in mortgage markets. Loan demand has slumped this year across products, from mortgages to auto and credit cards, as the U.S. Federal Reserve keeps rates at their highest levels in decades in a bid to bring inflation back under its 2% target. Further, U.S. mortgage revenue grew 4% in the second quarter despite a 13% decline in USIS mortgage credit inquiries. Workforce Solutions second quarter revenue grew 5%, with 12% non-mortgage revenue growth from 20% Verification Services non-mortgage revenue growth led by Government and Talent Solutions. Mortgage revenue was down 12%. USIS second quarter revenue growth of 7% with 27% mortgage revenue growth and 1% non-mortgage revenue growth. International second quarter revenue growth of 17% on a reported basis and up 28% on a local currency basis, with organic local currency revenue growth of 12%. There is significant new product innovation leveraging new EFX Cloud with 12.5% new product Vitality Index in the second quarter and 89% of new models and scores built using Artificial Intelligence and Machine Learning.

EFX in the second quarter of FY 24 has reported the adjusted earnings per share of $1.82, beating the analysts’ estimates for the adjusted earnings per share of $1.73. The company had reported the adjusted revenue growth of 9 percent to $1.43 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $1.42 billion. Net income attributable to Equifax of $163.9 million was up 19% in the second quarter of 2024 compared to $138.3 million in the second quarter of 2023. Adjusted EBITDA margin was 32.0% in the second quarter of 2024 compared to 32.7% in the second quarter of 2023.

Equifax expects revenue between $1.43 billion and $1.45 billion in the three months ended Sept. 30, the mid-point of which came in below Wall Street’s average expectation of $1.45 billion, according to LSEG data. The company is projecting third-quarter EPS in the range of $1.75 to $1.85, below the analyst consensus of $2.01.

For the full year of 2024, Equifax anticipates EPS between $7.22 and $7.47, with the midpoint below the consensus of $7.38. Revenue expectations are between $5.69 to $5.75 billion, with the midpoint slightly above the analyst estimate of $5.723 billion.