Fair Isaac Has a Blowout Quarter
Fair Isaac (NYS: FICO) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Fair Isaac beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
Fair Isaac tallied revenue of $170.3 million. The three analysts polled by S&P Capital IQ looked for revenue of $161.2 million. Sales were 9.2% higher than the prior-year quarter's $155.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.81. The four earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $0.81 for Q1 were 103% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 73.0%, 240 basis points better than the prior-year quarter. Operating margin was 30.6%, 1,100 basis points better than the prior-year quarter. Net margin was 17.6%, 730 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $157.1 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $645.2 million. The average EPS estimate is $2.63.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 80 members out of 105 rating the stock outperform, and 25 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Fair Isaac a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fair Isaac is hold, with an average price target of $34.80.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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