Equifax reported strong revenue growth for Q4 2015 of 7% (AFX) and full year 2015 of 9% (AFX)

Equifax Smith“2015 was an outstanding year for Equifax.  Our strong performance continued throughout the fourth quarter, with broad-based contribution from each of the business units. We are well positioned for 2016 and beyond,” said Richard F. Smith, Equifax’s Chairman and Chief Executive Officer. “We enter 2016 with great momentum driven by our New Product Innovation, Enterprise Growth Initiatives, and a management team that is dedicated to delivering its best to our customers, shareholders, employees, and consumers.

In addition, we shortly expect to close on a large strategic acquisition. Veda Group, the premier provider of information solutions in Australia and New Zealand, will bring a highly experienced management team with new and exciting growth opportunities in the Asia Pacific region for 2016 and beyond.”

Equifax Q4 2015USIS delivers strong growth and margin expansion:  Total revenue was $296.1 million in the fourth quarter of 2015 compared to $278.0 million in the fourth quarter of 2014, an increase of 7 percent.

  • Online Information Solutions revenue was $203.9 million, up 6 percent from a year ago.
  • Mortgage Solutions revenue was $28.0 million, up 10 percent from a year ago.
  • Financial Marketing Services revenue was $64.2 million, up 7 percent when compared to a year ago.

Operating margin for USIS was 41.6 percent in the fourth quarter of 2015 compared to 41.1 percent in the fourth quarter of 2014.

International continues to deliver double digit local currency revenue growth and expanding operating margin:  Total revenue was $142.6 million in the fourth quarter of 2015, down 1% from the fourth quarter of 2014 and an 11 percent increase on a local currency basis.

  • Europe revenue was $64.0 million, up 3 percent from the fourth quarter of 2014 and up 10 percent on a local currency basis.
  • Latin America revenue was $49.4 million, up 2 percent from the fourth quarter of 2014 and up 18 percent on a local currency basis.
  • Canada revenue was $29.2 million, down 11 percent from the fourth quarter of 2014 and up 5 percent on a local currency basis.

Operating margin for International was 20.7 percent in the fourth quarter of 2015 compared to 20.1 percent in the fourth quarter of 2014.

Workforce Solutions delivers double digit revenue growth and impressive margin expansion again:   Total revenue was $143.7 million in the fourth quarter of 2015, a 12 percent increase from the fourth quarter of 2014.

  • Verification Services revenue was $91.7 million, up 14 percent when compared to a year ago.
  • Employer Services revenue was $52.0 million, up 8 percent when compared to a year ago.

Operating margin for Workforce Solutions was 36.8 percent in the fourth quarter of 2015 compared to 32.5 percent in the fourth quarter of 2014.

Personal Solutions continues its strategic transformation with double digit revenue growth:  Revenue was $83.9 million, a 12 percent increase from the fourth quarter of 2014 and up 14 percent on a local currency basis.  Operating margin was 27.0 percent compared to 35.7 percent in the fourth quarter of 2014.

For the full year 2015, revenue was $2.7 billion, a 9 percent increase from 2014. Diluted EPS attributable to Equifax was $3.55,a 19 percent increase from the prior year. On a non-GAAP basis, full year adjusted EPS attributable to Equifax was $4.50, up 16 percent from the prior year period. For the full year 2015, operating margin was 26.1% compared to 26.2% for the prior year.

First Quarter and Full Year 2016 Outlook:  For the full year, based on the current level of domestic and international business activity, and the Veda acquisition later this month, we anticipate revenue between $3.0 billion and $3.1 billion, and Adjusted EPS between $4.95 and $5.05. Given the recent strength of the US dollar, at current exchange rates, we expect foreign currency to negatively impact 2016 revenue growth between 2% to 3%, and Adjusted EPS by approximately $0.13. On a constant currency basis, revenue is expected to grow 15% to 19% in 2016. On a constant currency basis, Adjusted EPS is expected to grow 13% to 15%.  For the first quarter, based on the current level of domestic and international business activity, not including the Veda acquisition, we anticipate revenue between $685.0 million and $695.0 million, and Adjusted EPS between $1.14 and $1.16.  Given the recent strength of the US dollar, at current exchange rates, we expect foreign currency to negatively impact revenue growth by 3%, and Adjusted EPS by approximately $0.04. On a constant currency basis, organic revenue is expected to grow 8% to 10% and Adjusted EPS is expected to grow 10% to 12%.

Source:  Equifax Earnings Release