Analysts Have Made A Financial Statement On Fair Isaac Corporation's (NYSE:FICO) Second-Quarter Report

As you might know, Fair Isaac Corporation (NYSE:FICO) recently reported its second-quarter numbers. The result was positive overall - although revenues of US$434m were in line with what the analysts predicted, Fair Isaac surprised by delivering a statutory profit of US$5.16 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Fair Isaac

Taking into account the latest results, the consensus forecast from Fair Isaac's twelve analysts is for revenues of US$1.71b in 2024. This reflects a modest 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.3% to US$20.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.70b and earnings per share (EPS) of US$20.58 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$1,317, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fair Isaac, with the most bullish analyst valuing it at US$1,500 and the most bearish at US$940 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fair Isaac shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Fair Isaac's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fair Isaac is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Fair Isaac. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fair Isaac going out to 2026, and you can see them free on our platform here..

Even so, be aware that Fair Isaac is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.