Equifax, the credit reporting agency, has revised its revenue and profit outlook for the year as a result of the current state of the U.S. mortgage market. This development has had a negative impact on Equifax’s stock, with a 9.6% decrease in share price to $214.62. This decline marks the largest percentage decrease in almost five years, despite the stock being up 10% for the year.
Equifax, headquartered in Atlanta, is responsible for maintaining credit reports on over 200 million U.S. consumers, which it sells to lenders. The company has projected revenue of $5.3 billion and adjusted per-share earnings of $6.98 at the midpoint. Equifax’s revenue outlook reflects the effect of the weaker mortgage market and the loss of mortgage revenue, while its adjusted earnings forecast accounts for the impact of lower mortgage revenue.
Chief Executive Mark Begor expressed his expectations for the future, stating, “We anticipate that the weaker-than-expected U.S. mortgage market we observed in June will persist, leading to an approximate 37% decline in mortgage originations for the full year.”
Furthermore, Equifax recently reported a decrease in net income and flat revenue during the second quarter.
In conclusion, Equifax is facing challenges due to the current state of the U.S. mortgage market, resulting in a revision of its revenue and profit outlook for the year. Despite a positive performance earlier in the year, the company is now experiencing a significant decrease in share price. Chief Executive Mark Begor anticipates a continued decline in mortgage originations for the rest of the year. Equifax remains committed to navigating these obstacles as it strives to maintain its position as a leading credit reporting agency.
