(Reuters) – Credit ratings firm Equifax’s fourth-quarter revenue fell short of estimates, hurt by a weaker hiring market and slower-than-expected mortgage growth as interest rates remain elevated, sending shares down over 6.5% on Thursday.
The Atlanta, Georgia-based company’s revenue rose 7%, powered by a 29% jump in U.S. mortgage revenue, but missed analysts’ estimate of $1.44 billion, according to data compiled by LSEG.
Revenue from its workforce solutions unit, the company’s largest operating segment, increased by 7% to reach $598.1 million.
The company, however, flagged weakness in the unit, which vets potential employees for businesses, due to a slower hiring market in the U.S.
Demand for mortgages influences results at Equifax, which relies on providing credit reports and verification services.
Although the Federal Reserve’s cut of 100 basis points has provided some relief, possible future cuts have led many potential homebuyers to wait for a more favorable market.
Adjusted profit came in at $2.12 per share in the three months ended Dec. 31, compared with Wall Street expectations of $2.10 per share.
Equifax, along with Experian and TransUnion, is one of the three largest consumer credit reporting agencies in the U.S.
The company sees 2025 revenue between $5.89 billion and $6.01 billion as mortgage credit inquiries in the U.S. missing analysts’ expectation of $6.27 billion.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Tasim Zahid)
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