Equifax (EFX) Expects Lower Earnings and Revenue Due to High Interest Rates

Thursday, 18 April 2024, 15:30

Equifax (NYSE: EFX) reported lower-than-expected earnings and revenue for Q1 2024 due to reduced mortgage demand caused by high interest rates. Investors reacted by driving the stock price down by 10%. While the company maintained its full-year guidance, uncertainties linger as market conditions remain challenging.
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Equifax (EFX) Expects Lower Earnings and Revenue Due to High Interest Rates

Credit demand is under pressure

The financial data analytics company Equifax announced earnings of $1.50 per share in Q1 2024, surpassing estimates, but revenue was slightly lower than expected. The company's forecast for the current quarter fell short of analyst predictions, citing high interest rates affecting mortgage demand.

Investor expectations shift

Investors had anticipated rate cuts in spring to boost lending demand, but concerns over U.S. inflation have altered expectations. Equifax's shares had risen 50% since last October on hopes of a rate reduction, but until market conditions improve, further stock declines are possible.

Should you invest in Equifax?

The Motley Fool Stock Advisor recommends other stocks over Equifax due to its challenging forecast. While Equifax remains a solid company, macroeconomic conditions may hinder profit growth until interest rates stabilize.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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