Fair Isaac (FICO) Earnings Expected to Grow: Should You Buy?

Core Insights - The upcoming earnings report for Fair Isaac (FICO) is expected to show a year-over-year earnings increase, with a consensus EPS estimate of $6.37, reflecting a 12.5% growth from the previous year [17][2]. - The Zacks Earnings ESP indicates a negative reading of -1.83%, suggesting that analysts have recently become bearish on the company's earnings prospects [21]. - The consensus EPS estimate has been revised 0.24% lower over the last 30 days, indicating a reassessment of the company's earnings outlook by covering analysts [18]. Group 1: Earnings Expectations - Fair Isaac is projected to report revenues of $448.53 million, which is a 12.5% increase compared to the same quarter last year [2]. - The company has a history of beating consensus EPS estimates, having done so two out of the last four quarters [13]. - The earnings report is anticipated to be released on July 31, 2024, and could significantly impact the stock price depending on whether the results meet or exceed expectations [16]. Group 2: Analyst Insights - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being a more recent version that may reflect the latest information [4]. - A negative Earnings ESP reading does not necessarily indicate an earnings miss, but it complicates the prediction of an earnings beat [5]. - The predictive power of the Earnings ESP model is significant primarily for positive readings, with a strong correlation to earnings beats when combined with a favorable Zacks Rank [20]. Group 3: Market Sentiment - Despite the potential for an earnings beat, Fair Isaac does not currently appear to be a compelling candidate for such an outcome, and investors should consider other factors before making investment decisions [15]. - The stock carries a Zacks Rank of 4, indicating a sell recommendation, which may further influence investor sentiment [6]. - The overall market expectation is that earnings will increase due to higher revenues, but actual results will be crucial in determining stock performance [7].