(Reuters) - Credit ratings firm Equifax (NYSE:EFX) forecast 2024 revenue below Wall Street estimates on Wednesday, as the mortgage market continues to remain challenging in a higher-for-longer interest rate environment.
The U.S. mortgage market has been hit by a slowdown over the past 12 months as high interest rates keep borrowers on the sidelines. Equifax's mainstay units rely on customers seeking credit information to check their loan eligibility.
The company's 2024 revenue forecast between $5.67 billion and $5.77 billion came in below the mid-point Wall Street expectations of $5.74 billion, according to LSEG data.
Shares of the company fell 3.3% in extended trading.
The guidance for the year reflects an expectation of an over 16% decline in 2024 U.S. mortgage credit inquiries, with the first half of the year expected to be weaker versus the second half, the company said.
Equifax also expects current-quarter revenue between $1.38 billion and $1.4 billion, below analysts' expectations of $1.41 billion, according to LSEG data.
In the fourth quarter, the company's revenue rose 11% to $1.33 billion, beating estimates of $1.31 billion.
Adjusted profit came in at $1.81 per share in the three months ended Dec. 31, compared with Wall Street expectations of $1.75 per share.