Equifax Inc. today announced that it now expects earnings per share to exceed $2.00 for calendar year 2006, an increase from its previous EPS estimate of $1.90 to $1.99 which was released on February 2, 2006. The company also revised its targets for capital expenditures to $55 million to $60 million, from $60 million to $65 million. Equifax reaffirmed its previous guidance with respect to estimated 2006 revenue growth of 7 to 10 percent, and cash provided by operating activities of $360 million to $365 million.
As previously announced, Equifax is holding its Investor Conference today at the New York Stock Exchange beginning at 8:30 a.m. As part of the meeting, executives will review Equifax’s current operations, highlight Equifax’s key growth initiatives, and outline objectives for growth through 2010. Executives will also outline how the company will build on the strengths of its current core business model, including:
- Unique product solutions and data;
- Strong franchise and excellent reputation;
- Highly recurring, transaction-based revenue;
- Superior high value technology; and
- Strong international market position.
Building from this core, Equifax’s long-term strategy is based on four pillars:
- Deepen its relationships with existing customers;
- Provide unique and differentiated data;
- Build on its capabilities to offer enabling technologies and predictive sciences; and
- Target emerging opportunities, through organic growth, acquisitions or geographic expansion.
Equifax has identified initiatives with potential incremental revenue in each of these areas, and will outline the application of the corporate strategy to its North America Information Services, Marketing Services, Personal Solutions, Europe and Latin America business units, including among other matters discussed business unit goals for revenue growth and operating margins. For the company as a whole through the planning horizon of 2010, Equifax will state its objective, based on current planning assumptions and available information, of attaining:
- Compound annual growth in revenue of 7 to 10 percent from organic market growth, core organic growth initiatives and new markets, adjacencies and mergers/acquisitions;
- EPS growth in excess of 10 percent; and
- Cumulative cash from operations in excess of $1.9 billion.