By Mackenzie Tatananni

Shares of Equifax rose sharply after the credit-rating company reported better-than-expected quarterly earnings and noted a gain in revenue in its mortgage business.

Earnings per share came in at $1.53, comfortably ahead of the consensus call for $1.41 a share among analysts tracked by FactSet. Revenue rose 5% on a local-currency basis to $1.442 billion; analysts had expected $1.416 billion.

U.S. mortgage revenue rose 7% despite weakness in the underlying mortgage market, Equifax said. The company noted that U.S. mortgage inquiries, or requests by lenders to review mortgage seekers' credit reports, fell just 9% from a year earlier, better than the 13% drop management had anticipated.

Shares climbed 12% to $240.94 on Tuesday, on pace for the largest percentage increase since Nov. 10, 2022, when they rose nearly 14%, according to Dow Jones Market Data.

Equifax reiterated its financial forecasts for 2025, calling for 6% revenue growth and adjusted earnings of $7.45 a share. CEO Mark Begor indicated that these were conservative measures, given the uncertain macro environment.

"We are clearly in a period of significant economic and market volatility, principally from uncertainty around tariffs and their impact on U.S. inflation and interest rates," Begor said on the earnings call. "Given the strength in the first quarter and our current run rates in key verticals, we would normally be increasing our 2025 revenue and adjusted EPS guidance."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 22, 2025 11:47 ET (15:47 GMT)

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