Equifax Inc. Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Equifax Inc. (NYSE:EFX) shareholders, with its shares surging 16% to US$257 in the week since its latest first-quarter results. Revenues were US$1.4b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.06 were also better than expected, beating analyst predictions by 10%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Equifax's 20 analysts is for revenues of US$5.99b in 2025. This would reflect a modest 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 19% to US$5.87. In the lead-up to this report, the analysts had been modelling revenues of US$5.99b and earnings per share (EPS) of US$5.80 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Equifax

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$278. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Equifax, with the most bullish analyst valuing it at US$310 and the most bearish at US$240 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Equifax's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. Compare this to the 138 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while Equifax's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Equifax going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Equifax you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.