After security breach costs, Equifax clears Q3 with $96M profit


Equifax reported $834.8 million in revenue in its third quarter, which is up 4 percent from the same time past year; analysts had expected this, as the bulk of the company's money comes from selling services to other business, not consumers.

"This is a journey", interim Chief Executive Paulino do Rego Barros Jr responded, saying the firm was working to make sure its security team could protect current systems.

Following this massive data breach, Senator Baldwin helped introduce the Freedom from Equifax Exploitation (FREE) Act to give control over credit and personal information back to consumers.

The company said in a third-quarter report released a day earlier that the breach was responsible for about $87.5 million in related expenses that period, including investigative and legal fees as well as expenses related to offering free protection to affected customers.

Third-quarter net income attributable to Equifax Inc. dropped from a year ago as the company revealed and addressed damage from a cybersecurity incident, but mortgage services revenue remained fairly stable.

Revenue from mortgage solutions represented about 12.6% of the company's $307.7 million in total revenue during the quarter.

The company also recorded a $56 million liability related to costs to provide free credit monitoring, and said those expenses could climb to $110 million.

Since the disclosure, the share of Equifax credit files locked or frozen by consumers has gone from 0.5 percent to between 1.5 percent and two percent, according to Gamble.

Equifax executives are scheduled to take questions from analysts during a conference call on Friday at 8:30 NY. Even so, the company's earnings topped Wall Street's forecasts.

All told, the company said Thursday that its net income fell to $96.3 million, or 79 cents per share, for the three months ended September 30. The average estimate of 14 analysts surveyed by Bloomberg was for adjusted profit of $1.49 a share.

Revenue rose 3.8 percent to $843.8 million, which fell short of the $847.3 million analysts were expecting. Equifax said the database intrusion continued until July, exposing the bevy of information that Equifax holds.

The latest management commentary "generally supports the view that the long-term business model looks at least okay", said Huff, who has an "equal weight" rating on Equifax shares.