Fair Isaac Earnings: Here’s Why Investors are Selling Shares Now

Fair Isaac Corp. (NYSE:FICO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.23%.

Fair Isaac Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 35.59% to $0.80 in the quarter versus EPS of $0.59 in the year-earlier quarter.

Revenue: Rose 14.53% to $183.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fair Isaac Corp. reported adjusted EPS income of $0.80 per share. By that measure, the company beat the mean analyst estimate of $0.66. It missed the average revenue estimate of $187.9 million.

Quoting Management: “We saw continued strength in our Scores and Tools segments this quarter, fortifying the confidence we have in our overall strategic direction,” said Will Lansing, chief executive officer. “Recurring revenues from our Applications segment were strong again this quarter, though we did experience some disappointing delays in applications license sales to North American banks. All in all, we remain confident about our prospects, and focused on executing against our plan.”

Key Stats (on next page)…

Revenue increased 2.49% from $179.33 million in the previous quarter. EPS increased 56.86% from $0.51 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.82 to a profit $0.94. For the current year, the average estimate has moved down from a profit of $2.90 to a profit of $2.79 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)