Equifax Inc. announced on Wednesday that it expects its full-year 2024 revenue to fall below Wall Street projections, driven by weak demand in the mortgage market. The credit ratings firm attributes this to persistently high interest rates, which have curtailed loan demand, particularly for long-term fixed-rate mortgages. Despite the U.S. Federal Reserve delivering its first rate cut in four years in late September, borrowing costs remain high, discouraging new mortgage activity.
The company anticipates full-year adjusted revenue between $5.70 billion and $5.72 billion, missing analysts’ average estimate of $5.74 billion. Shares of Equifax fell 5% in after-hours trading following the announcement.
However, Equifax's non-mortgage segment, which now comprises 80% of its total business, saw substantial growth. The company's third-quarter revenue rose 9% to $1.44 billion, with adjusted earnings increasing to $1.85 per share, compared to $1.76 a year earlier. This shift toward non-mortgage revenue is part of Equifax's strategy to become less dependent on the housing market.
CEO Mark Begor remains optimistic about the future, expressing confidence in Equifax’s long-term growth strategy, which targets an 8-12% revenue increase, higher margins, and enhanced free cash flow.
The company anticipates full-year adjusted revenue between $5.70 billion and $5.72 billion, missing analysts’ average estimate of $5.74 billion. Shares of Equifax fell 5% in after-hours trading following the announcement.
However, Equifax's non-mortgage segment, which now comprises 80% of its total business, saw substantial growth. The company's third-quarter revenue rose 9% to $1.44 billion, with adjusted earnings increasing to $1.85 per share, compared to $1.76 a year earlier. This shift toward non-mortgage revenue is part of Equifax's strategy to become less dependent on the housing market.
CEO Mark Begor remains optimistic about the future, expressing confidence in Equifax’s long-term growth strategy, which targets an 8-12% revenue increase, higher margins, and enhanced free cash flow.