Equifax sees 2024 revenue below estimates amid mortgage market slump
Oct 16 (Reuters) -Credit ratings firm Equifax EFX.N 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.
Reporting by Vedant Vinayak Vichare; editing by Alan Barona
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