Equifax Inc. (NYSE: EFX) today announced financial results for the quarter ended June 30, 2011. The company reported revenue from continuing operations of $487.1 million in the second quarter of 2011, a 6 percent increase from the second quarter of 2010.
Richard F. Smith, Chairman and CEO stated: “Overall performance in the second quarter was solidly in line with our expectations. Continued weakness in the U.S. mortgage sector that weighed on some of our core operating segments was offset by double digit revenue growth in International, North America Personal Solutions, and North America Commercial. Economic and regulatory uncertainty exists; however, we are optimistic about our opportunities for the second half of 2011. Improving trends in core U.S. credit, strong performance with a couple of our more unique product offerings, improved operating performance in International, and continued market share gains in North America Personal Solutions and Commercial will offset the challenges we face in the mortgage market.”
Second quarter diluted EPS from continuing operations attributable to Equifax was $0.28, down 39 percent from the second quarter of 2010 driven by a loss on the merger of our Brazilian business of $0.22 per share. The loss included the recognition of foreign exchange losses since our initial investment in 1998 and the income tax effects of the transaction. On a non-GAAP basis, adjusted EPS from continuing operations attributable to Equifax, excluding the impact of the loss on the merger of our Brazilian business and acquisition-related amortization expense, was $0.61, up 9 percent from the second quarter of 2010.
On May 31, 2011, Equifax completed the merger of its Brazilian business with Boa Vista Servicos S.A. (“BVS”) in exchange for a 15 percent equity interest in BVS, which is now the second largest consumer and commercial credit information company in Brazil.
Operating margin from continuing operations was 23.5 percent for the second quarter of 2011, up from 23.0 percent in the second quarter of 2010 and up from 23.1 percent in the first quarter of 2011.
Third Quarter 2011 Outlook: Based on the current level of domestic and international business activity that we have experienced through the current date and current foreign exchange rates, consolidated revenue from continuing operations for the third quarter of 2011 is expected to be up 6 to 9 percent from the year-ago quarter.
Source: Equifax Earnings Report
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