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.
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