Credit and information firm Equifax said Wednesday a stronger housing market and investments in new products helped boost third-quarter earnings by 17 percent.
Atlanta-based Equifax said revenue from the mortgage side of its consumer information business was up 35 percent. Many U.S. banks have seen growth in mortgage lending and refinancing as consumers take advantage of historically low interest rates.
Banks use Equifax for credit verification and risk management.
Equifax Chairman and CEO Richard Smith said in a news release that the mortgage business and investments in new services and markets “continue to pay off.”
“At this time, we expect the mortgage market to remain strong for the next few quarters,” Smith said. “I am also optimistic that the momentum we have established will continue as we move into 2013.”
Net income attributable to the company was $77.9 million, or 64 cents per share, compared with $66.7 million, or 54 cents per share, in the July-September quarter a year ago. Excluding noncash expenses related to past acquisitions, earnings were 75 cents per share, beating analysts’ expectations of 73 cents.
Equifax said it received an income tax benefit in the quarter of $3.3 million and recorded a $3.7 million charge related to severance costs in its international unit.
Operating revenue grew 11 percent to $543.9 million compared with third quarter 2011. Equifax posted a 13 percent revenue increase in its North America Personal Solutions business, which provides credit reporting and protection services to consumers.
Equifax predicts an 8 percent to 10 percent increase in revenue in the fourth quarter on a currency-neutral basis vs. the same period in 2011.
