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Equifax Stock Pops as Results Top Forecasts and Firm Announces $3B Buyback
Key Takeaways
Shares of Equifax ( EFX ) took off Tuesday as the rating service for borrowers topped quarterly profit and sales estimates, announced a new stock buyback program, and raised its dividend.
The company reported first-quarter adjusted earnings per share (EPS) of $1.53, with revenue increasing 4% year-over-year to $1.44 billion. Both topped Visible Alpha forecasts.
Equifax, whose shares jumped 12% to rank among the top S&P 500 gainers, said the performance came even with "headwinds" from the U.S. Mortgage and Hiring markets. U.S. Mortgage unit revenue was up 7%, Verification Services sales added 5%, and sales at the Workforce Solutions division were 3% higher.
The company said because of its strong free cash flow and balance sheet , its board approved a new $3 billion share repurchase plan that's to run for four years. In addition, Equifax boosted its quarterly dividend to $0.50 per share from $0.39.
Despite today's advance, Equifax shares continue to trade in negative territory year-to-date.
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