FICO is expected to report an EPS of $7.39 and revenue of $500.6 million for the quarter.
The company’s revenue is projected to grow by 14.39% from the same quarter last year.
Despite positive revenue projections, the consensus EPS estimate has been revised downwards by 0.1% over the past 30 days.
Fair Isaac Corporation, known as FICO (NYSE:FICO), is a prominent player in the analytics and decision management technology sector. The company is widely recognized for its FICO Score, a standard credit rating used by lenders. As FICO prepares to release its quarterly earnings on April 29, 2025, Wall Street anticipates an earnings per share (EPS) of $7.39 and revenue of approximately $500.6 million.
FICO’s expected performance is driven by strong platform growth and increased customer adoption. The Zacks Consensus Estimate projects second-quarter fiscal 2025 revenues at around $496 million, a 14.39% increase from the same quarter last year. This growth is significant, considering the company’s historical performance, where it missed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 0.92%.
Despite the positive outlook, the consensus EPS estimate has been slightly revised downwards by 0.1% over the past 30 days. This revision suggests that analysts have reassessed their initial estimates, which can influence investor actions. Empirical research indicates a strong correlation between earnings estimate revisions and short-term stock price performance, making these adjustments crucial for FICO’s near-term stock movement.
FICO’s financial metrics provide insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 87.44, indicating that investors are willing to pay $87.44 for every dollar of earnings. Its price-to-sales ratio is about 26.85, and the enterprise value to sales ratio is around 28.12, reflecting the company’s valuation relative to its sales. These figures suggest that investors have high expectations for FICO’s future growth.
The company’s financial health is further highlighted by its current ratio of approximately 1.80, indicating good short-term financial stability. However, the debt-to-equity ratio of -2.15 suggests that FICO has more liabilities than equity, which could be a concern for some investors. As FICO releases its earnings, the management’s discussion will be crucial in assessing the sustainability of any immediate price changes and future earnings projections.
