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Bozeman, Montana-based Fair Isaac Corporation (FICO) develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions. With a market cap of $49.4 billion, the company offers tools used to manage risk, fight fraud, build more profitable customer relationships, optimize operations, and meet strict government regulations. The leading analytics software company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Nov. 13.
Ahead of the event, analysts expect FICO to report a profit of $5.44 per share on a diluted basis, up 35.7% from $4.01 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect FICO to report EPS of $19.33, up 22% from $15.85 in fiscal 2023. Its EPS is expected to rise 28% year over year to $24.74 in fiscal 2025.
FICO stock has outperformed the S&P 500’s ($SPX) 37.5% gains over the past 52 weeks, with shares up 115.6% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 39.2% gains over the same time frame.
FICO’s strong stock performance is driven by its leading position in consumer credit scoring with FICO Scores, as well as its successful expansion into international markets. The company’s recent partnership with Cognizant Technology Solutions Corporation (CTSH) to launch a fraud prevention solution powered by FICO Falcon Fraud Manager is set to enhance security measures and streamline fraud detection for clients, showcasing its continued growth and innovation in the industry.
On Jul. 31, FICO shares closed up marginally after reporting its Q3 results. The company’s revenue stood at $447.8 million, up 12.3% year over year. Its adjusted EPS increased 10.4% from the year-ago quarter to $6.25. Despite showing positive growth, FICO failed to meet Wall Street expectations.
Analysts’ consensus opinion on FICO stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and four give a “Hold.” FICO’s average analyst price target is $2047.23, indicating a potential upside of 2.4% from the current levels.
On the date of publication, Neha Panjwani 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.
