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The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is pegged at $448.53 million, suggesting an increase of 12.5% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.37 per share, down by a penny over the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same on two occasions, the average negative surprise being 2.24%.
Let’s see how things are shaping up prior to this announcement.
Factors to Note
FICO’s fiscal third-quarter performance is expected to have benefited from strong growth in its scores and software solutions. The Zacks Consensus Estimate for fiscal third-quarter 2024 scores revenues is pegged at $241 million, indicating 19.3% year-over-year growth.
The Scores segment, particularly in mortgage originations, continues to show robust growth. The strong adoption of FICO Score 10T for non-conforming mortgages and the planned rollout of FICO Score 10T for conforming mortgages is likely to have contributed to this segment’s continued growth.
FICO’s software business, which includes both on-premises and SaaS offerings, is expected to have benefited from its “land-and-expand” strategy. The increase in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) for platform and non-platform solutions indicates a positive trend. The expansion driven by increased customer usage and platform offerings will likely continue to fuel growth.
The consensus mark for third-quarter fiscal 2024 on-premises and SaaS software revenues is pegged at $185 million, indicating a 7.55% year-over-year increase.
The company is heavily investing in innovation, particularly in its FICO platform. The recent FICO World event showcased advancements like an open API framework, a FICO marketplace and a more collaborative, composable ecosystem. These innovations are expected to have driven greater adoption and usage of FICO’s solutions, leading to increased customer satisfaction and expanded use cases.
A strong product portfolio and an expanding partner base are expected to have driven top-line growth in the to-be-reported quarter.
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 -1.83% and a Zacks Rank #4 (Sell). 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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Fair Isaac (FICO) to Report Q3 Earnings: What's in Store?
Fair Isaac (FICO - Free Report) is scheduled to report its third-quarter fiscal 2024 results on Jul 31.
The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is pegged at $448.53 million, suggesting an increase of 12.5% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.37 per share, down by a penny over the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same on two occasions, the average negative surprise being 2.24%.
Fair Isaac Corporation Price and EPS Surprise
Fair Isaac Corporation price-eps-surprise | Fair Isaac Corporation Quote
Let’s see how things are shaping up prior to this announcement.
Factors to Note
FICO’s fiscal third-quarter performance is expected to have benefited from strong growth in its scores and software solutions. The Zacks Consensus Estimate for fiscal third-quarter 2024 scores revenues is pegged at $241 million, indicating 19.3% year-over-year growth.
The Scores segment, particularly in mortgage originations, continues to show robust growth. The strong adoption of FICO Score 10T for non-conforming mortgages and the planned rollout of FICO Score 10T for conforming mortgages is likely to have contributed to this segment’s continued growth.
FICO’s software business, which includes both on-premises and SaaS offerings, is expected to have benefited from its “land-and-expand” strategy. The increase in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) for platform and non-platform solutions indicates a positive trend. The expansion driven by increased customer usage and platform offerings will likely continue to fuel growth.
The consensus mark for third-quarter fiscal 2024 on-premises and SaaS software revenues is pegged at $185 million, indicating a 7.55% year-over-year increase.
The company is heavily investing in innovation, particularly in its FICO platform. The recent FICO World event showcased advancements like an open API framework, a FICO marketplace and a more collaborative, composable ecosystem. These innovations are expected to have driven greater adoption and usage of FICO’s solutions, leading to increased customer satisfaction and expanded use cases.
A strong product portfolio and an expanding partner base are expected to have driven top-line growth in the to-be-reported quarter.
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 -1.83% and a Zacks Rank #4 (Sell). 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:
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Shopify’s shares have declined 23.1% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Apple (AAPL - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank of #2 at present.
Apple’s shares have gained 13.2% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 1.2% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.