Fair Isaac (NYSE:FICO) Updates FY 2025 Earnings Guidance

Key Points

• Fair Isaac (NYSE:FICO) has provided FY 2025 earnings guidance, projecting earnings per share of 29.150, slightly below the consensus estimate of 29.296, with anticipated revenue of $2.0 billion aligning with industry estimates.
• The company's stock rose by $27.95 to $1,533.01 during midday trading, maintaining a market cap of $37.31 billion and a P/E ratio of 66.02.
• Recent insider trading shows that CFO Steven P. Weber sold 1,000 shares, representing a 34.94% decrease in his ownership, highlighting concerns about stock valuation and potential strategic moves by company executives.

Fair Isaac (NYSE:FICO - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 29.150-29.150 for the period, compared to the consensus estimate of 29.296. The company issued revenue guidance of $2.0 billion-$2.0 billion, compared to the consensus revenue estimate of $2.0 billion.

Fair Isaac Stock Performance

Shares of Fair Isaac stock traded down $53.25 during trading on Friday, hitting $1,383.47. 798,467 shares of the stock traded hands, compared to its average volume of 395,901. The company has a fifty day moving average price of $1,687.81 and a two-hundred day moving average price of $1,812.84. Fair Isaac has a twelve month low of $1,350.00 and a twelve month high of $2,402.51. The stock has a market cap of $33.67 billion, a P/E ratio of 54.11, a PEG ratio of 2.32 and a beta of 1.28.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The technology company reported $8.57 earnings per share for the quarter, beating analysts' consensus estimates of $7.75 by $0.82. Fair Isaac had a negative return on equity of 48.88% and a net margin of 32.80%. The business had revenue of $536.42 million for the quarter, compared to the consensus estimate of $520.40 million. During the same period last year, the business earned $6.25 EPS. The firm's revenue was up 19.8% compared to the same quarter last year. On average, equities research analysts expect that Fair Isaac will post 24.15 EPS for the current fiscal year.

Fair Isaac declared that its Board of Directors has approved a stock buyback program on Thursday, June 19th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the technology company to repurchase up to 2.3% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several brokerages have commented on FICO. Bank of America began coverage on Fair Isaac in a research report on Thursday, April 10th. They issued a "buy" rating and a $2,800.00 price target on the stock. Wells Fargo & Company dropped their price target on Fair Isaac from $2,600.00 to $2,300.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 9th. Oppenheimer dropped their price target on Fair Isaac from $2,300.00 to $1,953.00 and set an "outperform" rating on the stock in a research report on Thursday. Jefferies Financial Group reaffirmed a "buy" rating on shares of Fair Isaac in a research report on Thursday, July 17th. Finally, Baird R W upgraded Fair Isaac from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 28th. Two investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $2,163.14.

Insider Activity at Fair Isaac

In related news, CFO Steven P. Weber sold 1,000 shares of the business's stock in a transaction on Monday, June 9th. The stock was sold at an average price of $1,738.25, for a total value of $1,738,250.00. Following the sale, the chief financial officer owned 1,862 shares of the company's stock, valued at $3,236,621.50. The trade was a 34.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Marc F. Mcmorris sold 797 shares of the business's stock in a transaction on Friday, May 9th. The shares were sold at an average price of $2,087.50, for a total value of $1,663,737.50. Following the completion of the sale, the director directly owned 242 shares in the company, valued at approximately $505,175. This represents a 76.71% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 19,829 shares of company stock valued at $36,836,320 in the last 90 days. 3.46% of the stock is owned by corporate insiders.

Institutional Trading of Fair Isaac

Several institutional investors have recently bought and sold shares of FICO. Great Lakes Advisors LLC boosted its stake in Fair Isaac by 5.7% in the first quarter. Great Lakes Advisors LLC now owns 112 shares of the technology company's stock worth $207,000 after purchasing an additional 6 shares in the last quarter. Brighton Jones LLC boosted its stake in Fair Isaac by 168.7% in the fourth quarter. Brighton Jones LLC now owns 481 shares of the technology company's stock worth $958,000 after purchasing an additional 302 shares in the last quarter. Finally, Woodline Partners LP boosted its stake in Fair Isaac by 46.1% in the first quarter. Woodline Partners LP now owns 2,138 shares of the technology company's stock worth $3,943,000 after purchasing an additional 675 shares in the last quarter. Institutional investors and hedge funds own 85.75% of the company's stock.

Fair Isaac Company Profile

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services.