Fair Isaac Corporation Gears Up for Earnings Report Amid Positive Growth Projections
With a market cap of $47.9 billion, Fair Isaac Corporation (FICO) stands out as a premier provider of advanced analytics and digital decision-making tools. These technologies enable businesses across various sectors to streamline processes and enhance decision-making. Based in Bozeman, Montana, the company is set to release its fiscal Q1 2025 earnings results on Thursday, January 23.
Anticipated Profit Growth on the Horizon
Analysts are predicting that FICO will announce a profit of $5.04 per share, which would represent a 30.2% increase from last year’s $3.87 per share. Notably, the company has met or exceeded Wall Street’s earnings expectations in two of the last four quarters, though it fell short in the other two. In its most recent quarter, FICO missed the consensus earnings per share (EPS) estimate by 1.8%.
Future Earnings Outlook is Promising
Looking ahead to fiscal 2025, analysts expect FICO’s EPS to reach $24.82, which translates to a significant growth of 39.6% from $17.78 in fiscal 2024. Projections suggest further growth, with EPS anticipated to rise 29.9% year-over-year to $32.24 in fiscal 2026.
Stock Performance Outshines the Market
In the past year, Fair Isaac’s shares have significantly outperformed the wider market, increasing by 75.2%. In comparison, the S&P 500 Index ($SPX) has risen 26.3%, while the Technology Select Sector SPDR Fund (XLK) has recorded a 27.1% gain year-to-date.
Positive Reaction to Previous Earnings Release
Following its Q4 earnings release on November 6, shares of FICO soared by 4.1%. This surge was fueled by strong financial results and optimistic guidance. The company reported a 16.4% year-over-year revenue increase, amounting to $453.8 million. A notable highlight was the 27% growth in the Scores segment, driven by higher unit prices in B2B solutions. The adjusted EPS of $6.54 represented a 30.5% rise compared to the previous year. FICO’s guidance for fiscal 2025 indicates confidence in sustained profitability and ongoing market growth.
Analysts Maintain Positive Sentiment on FICO Stock
The overall consensus among analysts regarding FICO stock remains moderately positive, reflected in a “Moderate Buy” rating. Out of 14 analysts, seven recommend a “Strong Buy,” two suggest “Moderate Buys,” and five classify it as a “Hold.” The average price target for FICO stands at $2,294.78, indicating a potential upside of 16.7% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
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