Summary
Equifax Inc. reported a significant increase in operating revenue for the third quarter of 2019, rising by 5% to $875.7 million, primarily driven by strong performance in its Workforce Solutions segment, which saw a 19% revenue increase. For the first nine months of 2019, revenue grew 1% to $2,601.8 million. Despite revenue growth, the company incurred a net loss of $408.0 million for the nine-month period, largely due to a substantial accrual of $701.3 million for losses associated with legal proceedings and investigations stemming from the 2017 cybersecurity incident. However, the third quarter showed a return to profitability with a net income of $81.1 million, a significant improvement from the prior year's $38.4 million. The company has made substantial progress in resolving legal and regulatory matters related to the 2017 cybersecurity incident, entering into a consumer settlement that includes a $380.5 million contribution to a restitution fund and significant payments to state attorneys general, the CFPB, and the NYDFS. While these settlements address a large portion of the outstanding liabilities, the company acknowledges the possibility of further losses. Management continues to invest in technology transformation and data security to strengthen its infrastructure and prevent future incidents. The company maintained its quarterly dividend of $0.39 per share.
Financial Highlights
52 data points| Revenue | $875.70M |
| SG&A Expenses | $295.50M |
| Operating Expenses | $754.10M |
| Operating Income | $121.60M |
| Interest Expense | $28.00M |
| Net Income | $83.80M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 121.00M |
| Shares Outstanding (Diluted) | 122.30M |
Key Highlights
- 1Third quarter 2019 operating revenue increased 5% year-over-year to $875.7 million, driven by strong performance in Workforce Solutions.
- 2For the nine months ended September 30, 2019, operating revenue increased 1% to $2,601.8 million.
- 3The company reported a net income of $81.1 million for the third quarter of 2019, a substantial increase from $38.4 million in the prior year.
- 4A significant accrual of $701.3 million was recorded for losses related to the 2017 cybersecurity incident, contributing to a net loss of $408.0 million for the first nine months of 2019.
- 5Equifax reached a major consumer settlement for the 2017 cybersecurity incident, involving a $380.5 million contribution to a restitution fund and significant payments to regulatory bodies.
- 6The company continues to invest in technology transformation and data security, incurring increased expenses and capital expenditures.
- 7The quarterly dividend remained stable at $0.39 per share.