Let’s dig into the relative performance of Equifax (NYSE: EFX) and its peers as we unravel the now-completed Q2 data & business process services earnings season.
A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.
The 9 data & business process services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.6% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Equifax (NYSE: EFX)
Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.
Equifax reported revenues of $1.54 billion, up 7.4% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance meeting analysts’ expectations.
Equifax delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $248.
Read our full report on Equifax here, it’s free.
Best Q2: CSG (NASDAQ: CSGS)
Powering billions of critical customer interactions annually, CSG Systems (NASDAQ: CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.
CSG reported revenues of $297.1 million, up 2.3% year on year, outperforming analysts’ expectations by 1.9%. The business had a very strong quarter with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
CSG delivered the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.9% since reporting. It currently trades at $64.01.
Is now the time to buy CSG? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Broadridge (NYSE: BR)
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Broadridge reported revenues of $2.07 billion, up 6.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter meeting analysts’ expectations.
Interestingly, the stock is up 3.9% since the results and currently trades at $258.15.
Read our full analysis of Broadridge’s results here.
SS&C (NASDAQ: SSNC)
Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.
SS&C reported revenues of $1.54 billion, up 5.9% year on year. This result beat analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ full-year EPS guidance estimates.
The stock is up 7% since reporting and currently trades at $89.49.
Read our full, actionable report on SS&C here, it’s free.
EXL (NASDAQ: EXLS)
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
EXL reported revenues of $514.5 million, up 14.7% year on year. This number topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
The stock is up 4.6% since reporting and currently trades at $44.14.
Read our full, actionable report on EXL here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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