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The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $454.78 million, suggesting an increase of 16.69% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.60 per share, up 2% over the past 30 days, indicating 31.74% year-over-year growth.
The company’s earnings missed the Zack’s Consensus Estimate in three of the trailing four quarters while beating the same on one occasion, the average surprise being 0.07%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
FICO’s fiscal fourth-quarter performance is expected to have benefited from strong growth in its scores and software solutions. The Zacks Consensus Estimate for fiscal fourth-quarter 2024 scores revenues is pegged at $249 million, indicating 25.76% year-over-year growth.
The Scores segment, especially in mortgage originations, continues to show strong growth. The strong adoption of FICO Score 10T for non-GSE (non-government-sponsored entity) mortgages is likely to have contributed to this segment’s continued expansion. Firms use the FICO 10-T for credit decisions, investor reporting and securitization.
FICO’s software business, which includes both on-premises and SaaS (Software-as-a-Service) offerings, is anticipated to have gained from the ‘land-and-expand’ strategy. The credit scoring leader’s dollar-based net retention rate has been impressive and is expected to keep the momentum in the fourth quarter.
Exiting the third quarter, FICO’s impressive growth in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) suggests increasing customer engagement and platform expansion. This is likely to have continued to fuel growth in the fourth quarter.
The consensus mark for fourth-quarter fiscal 2024 on-premises and SaaS software revenues is pegged at $185 million, indicating an 11.45% year-over-year increase.
Partnerships like the financial education initiative with Chelsea Football Club and US Soccer Foundation have strengthened FICO’s brand presence and expanded its customer base. These initiatives are also expected to have improved customer engagement, brand value and thus FICO’s revenues in the fourth quarter of 2024.
FICO has been heavily investing in innovation, particularly in its FICO platform, and the FICO World event is expected to have driven pipeline growth for platform SaaS bookings, further supporting fourth-quarter momentum.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Fair Isaac currently has an Earnings ESP of -0.94% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Should you Buy, Sell or Hold FICO Stock Before Q4 Earnings Release?
Fair Isaac (FICO - Free Report) is set to report its fourth-quarter fiscal 2024 results on Nov. 6.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $454.78 million, suggesting an increase of 16.69% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.60 per share, up 2% over the past 30 days, indicating 31.74% year-over-year growth.
The company’s earnings missed the Zack’s Consensus Estimate in three of the trailing four quarters while beating the same on one occasion, the average surprise being 0.07%.
Fair Isaac Corporation Price and EPS Surprise
Fair Isaac Corporation price-eps-surprise | Fair Isaac Corporation Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
FICO’s fiscal fourth-quarter performance is expected to have benefited from strong growth in its scores and software solutions. The Zacks Consensus Estimate for fiscal fourth-quarter 2024 scores revenues is pegged at $249 million, indicating 25.76% year-over-year growth.
The Scores segment, especially in mortgage originations, continues to show strong growth. The strong adoption of FICO Score 10T for non-GSE (non-government-sponsored entity) mortgages is likely to have contributed to this segment’s continued expansion. Firms use the FICO 10-T for credit decisions, investor reporting and securitization.
FICO’s software business, which includes both on-premises and SaaS (Software-as-a-Service) offerings, is anticipated to have gained from the ‘land-and-expand’ strategy. The credit scoring leader’s dollar-based net retention rate has been impressive and is expected to keep the momentum in the fourth quarter.
Exiting the third quarter, FICO’s impressive growth in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) suggests increasing customer engagement and platform expansion. This is likely to have continued to fuel growth in the fourth quarter.
The consensus mark for fourth-quarter fiscal 2024 on-premises and SaaS software revenues is pegged at $185 million, indicating an 11.45% year-over-year increase.
Partnerships like the financial education initiative with Chelsea Football Club and US Soccer Foundation have strengthened FICO’s brand presence and expanded its customer base. These initiatives are also expected to have improved customer engagement, brand value and thus FICO’s revenues in the fourth quarter of 2024.
FICO has been heavily investing in innovation, particularly in its FICO platform, and the FICO World event is expected to have driven pipeline growth for platform SaaS bookings, further supporting fourth-quarter momentum.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Fair Isaac currently has an Earnings ESP of -0.94% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks (ANET - Free Report) has an Earnings ESP of +0.72% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have increased 67.4% year to date. ANET is set to report its third-quarter 2024 results on Nov. 7.
Bilibili (BILI - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2 at present.
Bilibili shares have appreciated 80% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.
Ballard Power Systems (BLDP - Free Report) currently has an Earnings ESP of +8.86% and a Zacks Rank #2.
Ballard Power Systems shares have decreased 56.2% year to date. BLDP is set to report its third-quarter 2024 results on Nov. 5.