Equifax warns on post-breach costs, revenue hit

From Reuters - November 10, 2017

(Reuters) - Equifax Inc on Friday issued a fourth-quarter profit outlook that fell short of Wall Street expectations, saying the massive breach of its consumer data earlier this year would hurt sales and result in costs of $60 million to $75 million during the period.

Executives at the credit-reporting company blamed the expected revenue decline on delays in contract signing from business and government customers, which began in the third quarter and continued into the current quarter.

Were hoping to win back their trust and then be able to regain the business that weve indicated has been deferred, Chief Financial Officer John Gamble said in the call. Were still working through that process.

Equifax shares were little changed in midday trading. They have dropped around 25 percent since the companys Sept. 7 disclosure of the breach that exposed sensitive data on 145.5 million consumers.

Analysts on Fridays call probed Equifax for further details on its recovery effort. The company declined to provide estimates on total costs from the breach or say how much might be covered by insurance.

When is your cyber security going to be up to code, or up to standard, or however you want to define that? asked Wells Fargo Securities analyst William Warmington.


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