Editor's Pick

Equifax sees 2024 revenue below estimates amid mortgage market slump

(Reuters) – Credit ratings firm Equifax (NYSE:EFX) said on Wednesday it expects full-year revenue below Wall Street estimates, as higher-for-longer interest rates continued to weigh on loan demand and kept the mortgage market stagnant, sending shares down 5% after the bell.  

Even as the U.S. Federal Reserve delivered its first rate cut in four years in late September, borrowing costs remain elevated. Demand for loans — particularly long-term fixed-rate mortgages — has been subdued as borrowers wait for a more favorable environment.

The company, which assesses the creditworthiness of home buyers, expects adjusted revenue for the full year between $5.70 billion and $5.72 billion, below average analysts’ estimate of $5.74 billion.

The firm’s non-mortgage business accounted for 80% of its third-quarter revenue. This strategy to boost non-mortgage revenue growth is a part of the company’s effort to become resilient to the impacts of the mortgage market.

The company’s revenue rose 9% in the third quarter to $1.44 billion. Adjusted profit came in at $1.85 per share, compared with $1.76 apiece a year earlier.

“(We) remain confident in our long-term 8-12% revenue growth framework that is expected to deliver higher margins and accelerating free cash flow,” Equifax CEO Mark Begor said in a statement.

This post appeared first on investing.com

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like