What led to Equifax Inc. (NYSE: EFX) stock rise

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Equifax Inc. (NYSE: EFX) stock rose over 4.4% on April 21st, 2020 (as of 1:21 pm GMT-4 ; Source: Google finance) as the company reported first-quarter net income of $112.6 million compared with a net loss of $555.9 million in the year-ago period. The company has posted better than expected results for the first quarter of FY 20. In the first quarter of 2019 the company had incurred the pre-tax accrual of $690.0 million for losses related with certain legal proceedings and investigations related to the 2017 cybersecurity incident.

Despite the global challenge that aroused due to COVID-19 outbreak, the company is continuing to invest in the three-year $1.25 billion EFX 2020 cloud technology, data, and security transformation and intends to roll out new products to strengthen the company for the future. At the end of March, 2020, the Company had approximately $370 million in cash and $1.2 billion available under its revolving credit facility, which will mature in September 2023, and its receivables funding facility, which will mature in December 2022.  The company has recently amended the credit facility to increase the maximum leverage ratio through 2021 to provide the company with additional financial flexibility. Due to the uncertainties resulting from the economic impact globally of the coronavirus disease, the company has not provided the guidance for the second quarter of 2020, and also has withdrawn the previously announced guidance for full year 2020, which was issued on February 12, 2020.

EFX in the first quarter of FY 20 has reported the adjusted earnings per share of $1.40, beating the analysts’ estimates for the adjusted earnings per share of $1.29, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 13 percent to $957.9 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $911.7 million. The company has posted the adjusted EBITDA margin of 32.4 percent in the first quarter of 2020 compared to 30.5 percent in the first quarter of 2019.

For USIS segment, the company in Q1 2020 has reported 15% increase in the total revenue to $343.2 million in the first quarter of 2020. Online Information Solutions revenue grew 16% to $252.8 million, Mortgage Solutions revenue rose 33% to $42.8 million and Financial Marketing Services revenue declined 2% to $47.6 million compared to the first quarter of 2019. Workforce Solutions’ total revenue grew 32% to $301.6 million in the first quarter of 2020. However, International’s total revenue fell 4% to $216.0 million in the first quarter of 2020.

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