Have you evaluated the performance of Equifax's (EFX) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this credit reporting company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into EFX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $1.44 billion, marking an increase of 3.8% from the year-ago quarter. We will next turn our attention to dissecting EFX's international revenue to get a clearer picture of how significant its operations are outside its main base.
Exploring EFX's International Revenue Patterns
Asia Pacific generated $79.7 million in revenues for the company in the last quarter, constituting 5.53% of the total. This represented a surprise of +2.21% compared to the $77.98 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $84 million (5.92%), and in the year-ago quarter, it contributed $78.2 million (5.63%) to the total revenue.
Latin America accounted for 6.53% of the company's total revenue during the quarter, translating to $94.2 million. Revenues from this region represented a surprise of +1.72%, with Wall Street analysts collectively expecting $92.61 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $99.9 million (7.04%) and $91.1 million (6.56%) to the total revenue, respectively.
Of the total revenue, $86.6 million came from Europe during the last fiscal quarter, accounting for 6.01%. This represented a surprise of -1.36% as analysts had expected the region to contribute $87.79 million to the total revenue. In comparison, the region contributed $99.8 million, or 7.03%, and $86.2 million, or 6.20%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Canada contributed $63 million in revenue, making up 4.37% of the total revenue. When compared to the consensus estimate of $64.81 million, this meant a surprise of -2.79%. Looking back, Canada contributed $65.1 million, or 4.59%, in the previous quarter, and $65.8 million, or 4.74%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
Wall Street analysts expect Equifax to report $1.51 billion in total revenue for the current fiscal quarter, indicating an increase of 5.6% from the year-ago quarter. Asia Pacific, Latin America, Europe and Canada are expected to contribute 5.6% ($85.22 million), 6.7% ($101.47 million), 6% ($90.97 million) and 4.6% ($69.1 million) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $5.99 billion for the full year, marking an increase of 5.4% compared to last year. The expected revenue contributions from Asia Pacific, Latin America, Europe and Canada are projected to be 5.7% ($339.1 million), 6.8% ($408.14 million), 6.4% ($379.72 million) and 4.5% ($266.86 million) of the total revenue, in that order.
In Conclusion
Equifax's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Currently, Equifax holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Equifax's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 23.2%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Business Services sector, which counts Equifax among its entities, has appreciated by 9.4%. Over the past three months, the company's shares have seen an increase of 10.8% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 2.9% over the same period.
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