Equifax has lower 3rd quarter net, but exceeds view
NEW YORK (Reuters) - Equifax Inc (EFX.N), the largest U.S. credit reporting company, said on Monday that its earnings fell in the third quarter, but exceeded analyst estimates, and its overall revenue was higher.
Equifax, which recently finished its purchase of payroll services provider Talx Corp, said net income fell to $67.9 million, or 48 cents a share, from $78.9 million, or 61 cents a share, a year ago.
Analysts, however, had expected the Atlanta-based company to earn 47 cents a share on a net basis, according to Reuters Estimates.
"Some of the weakness was expected, but overall it was a pleasant surprise," said Nat Otis, an analyst with Keefe, Bruyette & Woods, who said he was particularly happy with the company's web-based earnings.
While revenue at the company's U.S. mortgage reporting and credit marketing services revenue dropped, overall revenue increased 25 percent to $492.5 million.
The higher revenue was partly due to its acquisition of Talx, but also its international operations, where revenue rose 17 percent.
European revenue was up 20 percent, helped in part by currency translation.
Equifax closed at $35.90 on the New York Stock Exchange, up 57 cents, or 1.6 percent. In after-hours trading, the Atlanta- based data provider gained another $1.09 to $36.99.
Equifax said operating income rose 7 percent to $129.2 million.
A spokesman for the company said $3.1 million from favorable litigation and $9.5 million from a tax benefit had increased last year's third quarter final results.
Equifax provides demographic information for businesses and individuals. Other major U.S. credit bureaus are Experian Group Inc. (EXPN.L) and closely held TransUnion LLC.
(Reporting by Ed Leefeldt)
