DOW JONES NEWSWIRES
Equifax Inc.'s (EFX) second-quarter profit dropped 16% on lower
international sales and some weakness in U.S. operations.
Shares fell 3% to $25.99 in after-hours trading as revenue fell
short of the company's guidance and the company projected
third-quarter earnings of 52 cents to 57 cents. Analysts estimated
59 cents, according to a survey by Thomson Reuters.
Equifax, one of the three major U.S. credit-reporting bureaus,
has branched into other areas such as credit-card marketing, fraud
detection and credit-risk consulting, to chase revenue in a tough
environment. It also has expanded internationally.
The company reported profit of $59.6 million, or 47 cents a
share, down from $70.8 million, or 54 cents a share, a year
earlier. Excluding acquisition-related costs and other items,
earnings fell to 57 cents a share from 64 cents.
Revenue dropped 9.3% to $455.4 million, nearly half due to
currency change.
In April, Equifax predicted adjusted earnings of 55 cents to 60
cents a share on revenue roughly the same or up slightly from the
first quarter's $452.9 million.
The U.S. consumer information solutions segment, which typically
accounts for half of Equifax's revenue, posted an 8% decrease.
Revenue at the Talx unit, which verifies borrower information for
mortgage lenders and provides human-resources services, rose
12%.
Total international revenue fell 24%, but only 8% in local
currencies.
Last week, rival Experian PLC (EXPGY) reported an 8% drop in
revenue for its latest quarter, largely due to shifting exchange
rates.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com