Equifax said Wednesday that second-quarter earnings rose 2.5 percent compared to the year-earlier period, to $92.8 million, as a slow-down from last year’s boom of mortgage refinancings impacted parts of its business.
The Atlanta-based credit information service said it earned $90.5 million in the year-ago quarter as a surge of borrowers refinancing their mortgages led to more demand for its service verifying borrowers’ incomes and employment status.
“We came into the year with a headwind. The mortgage market is down 50 percent,” said Jeff Dodge, senior vice president for investor relations.
Equifax said it beat analysts’ forecasts based on the numbers they pay attention to, which leave out some non-cash expenses such as the write-off over time of acquisition costs.
By that measure, the company’s “adjusted’ second-quarter profits were up 5 percent, to 96 cents a share, vs. Wall Street analysts’ average projection of 94 cents.
“This quarter was a pretty solid quarter,” said Dodge. “We beat the street.”
Equifax said it expects stronger growth in the second half of the year from its overseas operations and because of stronger domestic demand. The company said it could earn as much as $3.91 a share for the full year, compared to $2.90 a share last year. Last year’s profits totaled $352 million.
Revenues rose 18 percent in the second quarter this year in its international operations, to $153 million. Equifax’ overall revenues increased 4.6% in the quarter, to $614 million.
