Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Fair Isaac (FICO), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2025.
Fair Isaac (FICO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Fair Isaac Corporation is a high-quality, global analytics firm with impressive revenue and profit growth, but its stock is currently overvalued. Despite strong financials and minimal debt, FICO's shares are expensive relative to similar companies and their historical valuations. Management's ongoing stock buybacks are suboptimal at current high valuations; capital should be allocated toward growth opportunities instead.
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Fair Isaac (FICO) reported earnings 30 days ago. What's next for the stock?
Investors were more than fair to credit analysis specialist Fair Isaac's (FICO 2.93%) stock on Wednesday. They traded it up by nearly 3%, following a bullish upgrade by an analyst.
Fair Isaac keeps executing its price increase strategy and still has room for further increases in the scores segment. Volume growth in mortgage originations (110% YoY), on top of the increase in prices, should boost its free cash flow in FY2025. The growth rate has decreased in the software segment, but management expects it to accelerate in the coming quarters.
Explore the exciting world of Fair Isaac Corporation (FICO -1.51%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
I reiterate my hold rating for Fair Isaac due to its high valuation multiple and potential for further derating if growth slows in 2Q25. FICO's Scores segment shows strong growth with a 110% y/y increase in mortgage scores revenue, driven by significant pricing power and volume demand. Despite concerns in the software segment, FICO's strong free cash flow and underpenetrated TAM offer long-term growth potential.
FICO's first-quarter fiscal 2025 results benefit from higher revenues from mortgage originations.
Fair Isaac Corporation. (NYSE:FICO ) Q1 2025 Earnings Conference Call February 4, 2025 5:00 PM ET Company Participants Dave Singleton - Vice President, Investor Relations Will Lansing - Chief Executive Officer Steve Weber - Chief Financial Officer Conference Call Participants Manav Patnaik - Barclays Jason Haas - Wells Fargo Faiza Alwy - Deutsche Bank Surinder Thind - Jefferies Owen Lau - Oppenheimer Kyle Peterson - Needham George Tong - Goldman Sachs Jeffrey Meuler - Robert W.
Analytics and decision management technology specialist Fair Isaac (FICO -1.00%) reported fiscal 2025 first-quarter earnings on Tuesday, Feb. 4, that fell short of analysts' consensus estimates. Revenue for the quarter of $440 million was up 15% year over year but fell short of the forecasted $452 million.